THE Conservatives have been accused of "lying" over claims they can reduce the deficit without raising taxes.

Business Secretary Vince Cable said his coalition partners are trying to "balance the books on the backs of the poor."

Speaking at the Liberal Democrats UK Party Conference in Glasgow, Mr Cable attacked the Tories on the economy and for heaping the debt burden on poorer people.

He said more taxes were needed and some borrowing should be looked, as the cost was historically low.

Mr Cable said: "Any politician who tells you that the next Government can balance the budget and avoid tax increases is lying to you."

He said welfare cuts were damaging and he would not support them.

He added: "The need for budget discipline mustn't become an obsession with ever deeper cuts.

"Key public services have already been cut to the bone.

"The Tories are ideologically obsessed by cuts because they see it as a way of destroying public service and the welfare state, which they detest.

"The Tories' proposal to take another £25 billion or more out of welfare and unprotected Government departments will do great harm to valuable services.

"I will categorically not go along with this.

"So you might ask what is the alternative?

"The truth is, more taxes will be needed to contribute to deficit reduction and also to address unacceptable inequalities."

He called for cash to be allocated for building projects, even if the money had to be borrowed.

He added: "There is a role too for more public borrowing by central and local government to finance productive investment in transport, housing and innovation.

"When interest rates are so low, borrowing for investment is a no-brainer and is nothing to do with deficit reduction.

"Of course we need to protect the next generation from too much public as well as private debt, but the next generation would certainly not thank us for a legacy of under investment, over-stretched infrastructure and unaffordable homes."

Meanwhile, the Deputy Prime Minister, Nick Clegg, said more powers would be delivered to Scotland with no strings attached and that the same could happen in Wales too.

He also called for English cities and regions to be given greater autonomy.

He said: "When we deliver, and we will, no ifs, no buts, no caveats, no conditions imposed by David Cameron and the Conservative Party, what is in effect home rule for Scotland within the United Kingdom, I think we should aspire to deliver home rule to Wales as well."

Mr Clegg also called for greater decentralisation of powers to English cities and regions, backing a report from councils in the north of England, calling for investment in transport infrastructure, including a high-speed trans-Pennine rail link and improvements to motorways.

stewart.paterson@ eveningtimes.co.uk