Beecroft is a glimpse into coalition future It is unlikely that Adrian Beecroft is a fan of grievance procedures that allow employees to complain about unreasonable management. The millionaire venture capitalist has become a figure of controversy since the leaking and subsequent publication of his report calling for various employment protections to be scrapped. But reading his flimsy report makes clear Mr Beecroft was merely following the brief given him by Steve Hilton, former strategy supremo in Downing Street. Namely, on the unproved assumption that removing workers" rights increases employment, and without reference to any other public policy goals, to list the regulations most employers would prefer to live without. Although Mr Beecroft expresses his "great debt" to the "the team at BIS" that helped him draft the report, it is now clear the team's boss, Vince Cable, does not share Mr Hilton's assumptions. The business secretary has pointed out that the UK is not only already comparatively lightly regulated, but that making workers feel more insecure may not be the best idea when there is an urgent need for greater confidence and demand in the economy. With Downing Street apparently abandoning the more controversial of the Beecroft proposals, including no-fault dismissal, this looks like one of those occasions - invaluable to Lib Dem morale and credibility - when they can show how their presence in government is forcing moderation on the Conservatives. The episode will also be red meat to the disaffected group in Conservative ranks that has never been convinced by David Cameron and is viscerally hostile to any compromise with the Lib Dems. As well as underlining Mr Cable's status as the nemesis of Tory backbenchers, the Beecroft episode is being linked to rumours of more cordial relations between some senior Labour and Lib Dem figures. If true, this may be a pivotal moment as we approach the halfway point of the coalition government. As thoughts turn towards 2015, the main parties face very different challenges. Despite their current travails and continuing fears for the economy, the Conservatives have the comfort of more or less knowing what their pitch will be come the next general election: "We're through the worst, don't risk recovery with Labour or let them in the back door by voting Lib Dem." Mr Miliband knows where he wants to be, but has to find a path there. Labour's pitch is: "We're neither this government nor the last one and we have a plan to make life easier for hard-working families." The challenge is to move from the easy mode of opposition to the discipline of credible government and to develop a manifesto that does not require spending new money. But for the Lib Dems, not just the route but the destination for 2015 is unclear. Two of Nick Clegg's biggest assets from last time - his image as an outsider and honest broker - have gone up in smoke. It is very difficult to see how the Lib Dems can credibly maintain a position of "wait and see" in relation to their response to another hung parliament. With the Conservatives flagging and Labour benefiting, there will be those on the social democratic wing of the Lib Dems who see their best chance in the implicit offer to be a hand of moderation and experience on the shoulder of prime minister Miliband. But any suggestion that the Lib Dems are dating a putative future bride is bound to destabilise the coalition. Three years is an age in politics and Mr Clegg will want to keep his options open. There is also a sense that, as left-leaning voters and activists desert his party, it is slowly shifting to the right. Equally, while Mr Miliband is inclined to keep lines open to the Lib Dems, there are many around him for whom only the party's annihilation will do. In these cold and choppy waters, staying afloat is about the height of Lib Dem political ambition. There is a case to be made for the Lib Dem's strike rate in delivering their policies - from the pupil premium to the Green Investment Bank. However, as well as self-inflicted wounds, such as the pre-election pledge of student finance, Mr Clegg suffers from a lack of realism about coalition government among an electorate for whom - in contrast to most of Europe - it remains a novelty. In Mr Beecroft's ideal world, dogged perseverance probably would not be enough to guarantee an employee their job. Mr Clegg must hope it is a virtue the voters have come grudgingly to value by 2015. The writer was head of the Downing Street policy unit under Tony Blair