A controversial Downing Street adviser has accused Business Secretary Vince Cable of being a socialist who "appears to do very little to support business".
Venture capitalist Adrian Beecroft, who wrote a report for No 10 calling for proposals making it easier to fire workers, said the Liberal Democrat's objections to his plans were "ideological not economic".
"I think he is a socialist who found a home in the Lib Dems, so he's one of the left," he told the Daily Telegraph. "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 also attacked Deputy Prime Minister Nick Clegg for "always threatening to go nuclear" when he does not get his way.
The successful entrepreneur's report to Downing Street on employment laws exposed deep tensions in the Coalition.
The "compensated no-fault dismissal" scheme is the most divisive proposal in a report, which was published ahead of schedule after being leaked.
Mr Cable dismissed the idea as "complete nonsense" but many Conservatives backed the plans. Mr Beecroft said the Conservatives are being "hugely held back by the Lib Dems".
He added: "I think you could put together a bunch of suggestions out of the report, as a coherent programme, that would say, you know, we are tackling the issues that business has with employment law but the Lib Dems will have none of it.
"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. Which you'd think actually must be a hollow threat... Therefore, why can't the Government be more robust? I don't know what the answer is. But it is disappointing."
Mr Beecroft claims the British economy will grow by 5% less than expected, around £50 billion if the Government fails make radical reforms to employment laws.