CHIEF Treasury secretary Danny Alexander will lead on the economy in the Liberal Democrat election campaign — after party leader Nick Clegg yesterday dramatically demoted veteran MP Vince Cable.

Business Secretary Mr Cable was praised for his performances in debates with his Tory and Labour counterparts before the 2010 election, but Mr Clegg announced yesterday that he would not resume the role.

Tim Farron — whose term as Lib Dem president ended this month — will speak on foreign affairs, while current Home Office minister Lynne Featherstone will take the home brief.

Nick Harvey and Michael Moore will return to the front line to cover defence and Europe.

Mr Cable’s camp yesterday denied he had been demoted.

But Labour national executive member Kate Osamor said Mr Cable’s position was “irrelevant” because the Lib Dems will be “all in the bin” after the election.

“Vince Cable has made criticisms of the Tories very openly, but he’s done very little to live up to them,” she told the Star.

“If he really cared he’d leave the party and he’d speak out for the voiceless.”