The policy basis for Labour and Lib Dems happily sharing a bed

Beyond whispering about a possible Lib-Lab pact, what actual policy evidence is there for the two parties looking to work together? Quite a lot, it turns out. The basis of a joint programme appears to be forming, with the parties already converging on a surprising number of policies. Here are some of the areas where Lib Dems and Labour would be quite comfortable with one another:

Splitting up retail and investment banking

Ed Miliband announced yesterday that he’d break up banks’ retail and investment operations. This policy is more associated with Vince Cable than any other politician, and the Business Secretary was a strong proponent of the plan when he was in opposition. Though the Coalition is technically ring-fencing retail operations, the plan was watered down after last-minute lobbying and Cable is said to be unhappy. Ed’s big conference announcement will be just as attractive to Vince as it will be to his own party.