First test for coalition as David Laws quits over expenses

Published on Sunday 30 May 2010 23:02

THE government embarked on a frantic damage limitation exercise yesterday as a succession of senior ministers sought to minimise the impact of David Laws' dramatic resignation.

• Laws resigned yesterday as a result of his expenses

Politicians attempted to douse the coalition's first major test by insisting the former Chief Secretary to the Treasury was an honourable man who still had a future in front line politics.

The administration is reeling from the revelation Mr Laws had broken Commons rules by claiming 40,000 in rent on a flat owned by his male partner.

Following the departure of the government's rising star, David Cameron and Nick Clegg attempted to prolong the administration's honeymoon by deploying a series of front-bench big-hitters to defend Mr Laws' conduct and pave the way for his possible eventual return to government.

One by one, ministers emerged to play down Mr Laws' breach, with many suggesting he had not been motivated by money, but rather a desire to keep his homosexuality secret.

Business Secretary Vince Cable even suggested Mr Laws could have survived in his position because he had "done nothing wrong" in claiming monthly payments of up to 920, which were paid to his partner, James Lundie, for the rent on a property in Kennington, south London, in contravention of Commons rules.

Mr Cable said he hoped to see Mr Laws return to government and also insisted the resignation, which comes just three weeks after the formation of the historic administration, hadn't damaged the coalition.

Asked whether Mr Laws could have remained in his post, Mr Cable said: "He could have done because he hadn't done anything wrong. The mistake that was made was to protect privacy rather than for personal gain."

He added: "It hasn't damaged the coalition government. The government will continue."

Health Secretary Andrew Lansley said he did not believe Mr Laws was dishonest, while Work and Pensions Secretary Iain Duncan Smith said Mr Laws' decision was correct as he continued the Cabinet's work to keep the coalition on track.

Mr Laws was, Mr Duncan Smith insisted, a "thoroughly decent person" for whom the events represented a "personal tragedy". He added: "I have no questions that he has the talent to be back (in government], and I grew to like him a lot."

Justice Secretary Ken Clarke said he felt sorry for Mr Laws, and Education Secretary Michael Gove said the resignation left him "incredibly sad", adding: "David's an incredibly talented guy and he was completely non-tribal in the way he approached politics. He was thoughtful, he was idealistic.

"He was in politics for all the right reasons. I think people know that he had a very successful career in the City. If he was a guy who was motivated by money, he would never have gone anywhere near politics."

After reporting himself to the Parliamentary Standards Commissioner, Mr Laws stood down late on Saturday, claiming the scrutiny of his private life made it impossible for him to carry out his work on the forthcoming emergency Budget.

His departure led to the swift promotion of Danny Alexander to Chief Secretary of the Treasury and Scottish MP Michael Moore to Scottish Secretary.

The reshuffle led Scottish Labour MP Willie Bain to describe the situation as a "shambles", with the coalition now in "a crisis of its own making".

Mr Bain insisted that, while he had sympathy with Mr Laws over the way in which his private life had been exposed, the events had left Scotland with "the Tories' second choice of Lib Dem as Secretary of State".

He added: "Michael Moore is the Tories' Scottish salesman and now a Scottish Lib Dem MP is at the Treasury presiding over massive and risky cuts to Scottish families and businesses."

But a senior Scotland Office source insisted both promoted politicians were up to the job.

"Michael was at the heart of the 1999 (Scottish Executive] coalition, he was an aide to (former deputy first minister] Jim Wallace and ran the 1999 election campaign, so he understands the Scottish Parliament politics and coalitions."

The source would not be drawn on suggestions Mr Alexander had been promoted ahead of Lib Dem colleagues reluctant to step into a Cabinet role that called on tough action to cut public spending. "Danny is more than qualified to take on this role," the source said.