The controversial report by venture capitalist Adrian Beecroft continues to make headlines and cause political division, not just between the Government and opposition, but within the coalition itself.

Business Minister Vince Cable has dismissed some of the proposals within the report as “the wrong approach” and now Beecroft has hit back at him, saying “I think people find it very odd that he’s in charge of business and yet appears to do very little to support business.”

Mr Beecroft went on to say that the Conservatives are being “hugely held back by the Lib Dems” and that “Nick Clegg is always threatening to go nuclear and dissolve the whole thing if he doesn’t get his way with this, that and the other.”

Mr Clegg said there was “no evidence” that reducing workers’ rights would boost jobs.  “I don’t support them (the Beecroft plans) and I never have, for the simple reason that I have not seen any evidence yet that creating industrial scale insecurity amongst millions of workers is a way of securing new jobs.”

Meanwhile, Labour is accusing the Prime Minister David Cameron, who is thought to be broadly in favour of the report, of suppressing key proposals that his Liberal Democrat colleagues – and some of his own party – would find unpalatable.

These concern a delay in plans to introduce flexible working for parents, to abandon proposals to allow all workers to request flexible working, and to remove regulations surrounding the employment of children.

Shadow business secretary Chuka Umunna said that the report had been the subject of a “cynical piece of doctoring” which “questions the independence” of the report.

He went on to say that a lack of skills and changes to banking were more important to most business people, and he agreed with Liberal Democrat Vince Cable that no-fault dismissal proposals were “bonkers”.