Plans to make sacking workers easier erupts into Tory-Lib Dem row Vince Cable who declared the no-fault dismissal plan as a 'complete nonsense'. Tensions within the coalition over proposals to make it easier for businesses to fire workers have spilled out into the open with Tory backbenchers lining up against the Lib Dem frontbench led by business secretary Vince Cable who declared the idea "complete nonsense." The idea was one of a raft of suggestions put forward by Conservative party donor Adrian Beecroft in a report on reducing employment regulation to help businesses have more confidence to hire staff and create more jobs. Cable dismissed the idea as "complete nonsense," while close Liberal Democrat ally Lord Oakeshott denounced it as "the economics of the madhouse," saying it would be "bonkers" to undermine demand in the economy by making workers fear for their jobs. Tory MPs spoke out in favour of the change, which they said would encourage businesses to hire workers by removing the worry that they may not be able to afford to get rid of them if they do not perform. Downing Street made it clear that the prime minister David Cameron had not dismissed the proposal out of hand. A spokeswoman said the PM was weighing up options for making it easier for businesses to employ people and achieve growth, but was not "wedded" to any particular solution. In his report, Beecroft recommended compensation capped at £12,000 for employees removed under the scheme, which he said would make it more acceptable to workers and unions and eliminate many employment tribunal cases for constructive dismissal. He said: "While it may seem counterintuitive, even making it easier to remove under-performing employees will in the short run not increase unemployment as they will be replaced by more competent employees. In the long run, it will increase employment by making our businesses more competitive and hence more likely to grow. Beecroft warned that Britain's economy required "radical changes to encourage employers to take on more staff and thus to grow." Measures which encourage people to take employment but discourage employers from offering it "must be changed, permanently or temporarily, to help the country out of its difficulties," he said. Labour leader Ed Miliband said the proposals would encourage a "short-term, fast-buck, take-what-you-can culture" by allowing bosses to fire employees at will rather than investing in developing their skills. Trade unions denounced the plans as "disastrous for the economy." Beecroft's report was commissioned by the business department and submitted in October, but it has been kept under wraps amid reports of friction between Tory and Lib Dem ministers. Business minister Mark Prisk told MPs that 17 of its 23 recommendations were already being put into action.