Vince Cable, the Liberal Democrat’s Treasury spokesperson, will be meeting senior executives from volume housebuilders over the next two weeks to devise alternatives to the government’s rescue package for the industry

Cable is aiming to release his policy suggestions for refloating the housing market early next month.

The Liberal Democrat deputy leader met Tony Pidgley, Berkeley Group’s chief executive, and Rob Perins, its finance director, this week. He is understood to have meetings set up with other chief executives over the next fortnight.

He is expected to ask for thoughts on repossessions, what role housingassociations should take and the problems housebuilders are facing.

Cable has said unless the government changes its approach, the construction industry could collapse.