Clegg attacks Manchester's cuts as Flint brands conference speech 'utterly meaningless'

Nick Clegg promised to protect the "soul" of the Liberal Democrats today after activists vented their anger over key coalition policies.

The Deputy Prime Minister admitted that the alliance with the Tories meant the party was being forced to back "decisions which aren't exactly the ones we would make on our own".

But he attempted to soothe anxious rank-and-file by insisting the party was not losing its identity in government - adding: "I haven't changed one bit."

Mr Clegg delivered the impassioned defence of his leadership in a 40-minute speech closing the Lib Dems' spring conference. Labour frontbencher Caroline Flint dismissed his speech, however, as "utterly meaningless".

The gathering in Sheffield has overwhelmingly condemned radical plans for shaking up the NHS and reforming bank regulation. There has also been heavy criticism of the decision to U-turn on tuition fee hikes.

But despite the difficulties, Mr Clegg said it would have been wrong for the Lib Dems to cling to the "comfort blanket of opposition" - stressing achievements in securing tax cuts for the poorest, stronger civil liberties, and a referendum on the Alternative Vote.e

Referring to reports that a criminal plot against him had led police to throw a £2 million 'ring of steel' around the conference, he joked that David Cameron had not "kidnapped me".

"My life may have changed a fair bit since the last election. But I haven't changed one bit," he said.

"We all know that we did not take the easy path last May. But we did take the right path.

"Yes, being in government with the problems we inherited is hard. Explaining why we are having to make cuts is hard.

"And being in coalition with another party is not always easy either.

"Making compromises, settling differences and going out to explain decisions which aren't exactly the ones we would make on our own.

"But every single day I work flat out to make sure that what we are doing is true to our values."

The Lib Dems had always been the party of "fairness, freedom, and progress and reform", he added.

"We cherished those values in opposition. Now we are living by them in government.

"So yes, we have had to toughen up. But we will never lose our soul."

The fact that the coalition was being criticised for being "strong and radical" had also disproved Tory claims before the election that a hung parliament would be a "horror show", he said.

Mr Clegg resurrected his "Alarm Clock Britain" phrase in a bid to define the Lib Dems' core voters.

They are the people who are "proud to support themselves, but are only ever one pay cheque away from their overdraft", according to the party leader.

"People who, unlike the wealthy, have no choice but to work hard to make ends meet," he added.

"Our opponents try to divide us with their outdated labels of left and right.

"But we are not on the left and we are not on the right. We have our own label: Liberal. We are Liberals and we own the freehold to the centre ground of politics.

"Governing from the middle for the middle."

Mr Clegg launched a series of furious attacks on Labour for underhand tactics and leaving the country's finances in chaos.

He lambasted Labour-run Manchester council for cutting 2,000 jobs, suggesting they may be taking the drastic action to harm the coalition.

"Anyone who sacks a member of staff or shuts down a public service for political purposes is a disgrace to politics and a disgrace to Britain," he added.

Motions passed by members this weekend have called for a fundamental rethink of reforms to give GPs control of commissioning health services, and dismissed the coalition's 'Project Merlin' deal with banks for pay restraint, transparency and more lending as "weak" and "insufficient".

Mr Clegg warned against listening to "Labour's scaremongering about privatising the NHS".

"I know that many of you have concerns about the government's plans for the health service," he said. What I need you to know is that all of us in government are listening, and that we take those concerns seriously."

Aides stressed that the health policies were "not set in stone", and the Deputy Prime Minister shared anxieties about accountability and privatisation safeguards.

During a debate this morning, one activist described Project Merlin as "more like Project Tommy Cooper" because it was full of "pathetic tricks".

But Mr Clegg - who last week said he wanted to "wring the necks" of bankers who caused the credit crunch - insisted the coalition was "fixing the banks".

"We are going to take £10 billion more that Labour planned in tax off them this parliament," he said. "We are making sure they lend £10 billion to ordinary business this year alone."

He said the Government would also "act" on the findings of the independent banking commission on whether retail and investment banking functions should be separated.

Turning to tuition fees, Mr Clegg said it was "no secret" that the party had been unable to deliver its long-standing pledge to abolish charges for higher education.

"I know people deeply regret that," he insisted. "But though we have been divided, we can now unite together, behind one clear mission: to make university access fair, fair for all."

After Business Secretary Vince Cable admitted to "worries" that too many institutions wanted to levy the new top rate of £9,000 a year, the Deputy Prime Minister added: "Let me be clear to the universities: Open your doors or we will cut your fees back down to size."

Signalling his determination to press on with controversial measures, Mr Clegg stressed the compromises secured from the Conservatives - including taking the poorest out of the tax system, raising capital gains tax for the wealthy, a pupil premium for less well-off students, and the AV referendum.

"Clinging to the comfort blanket of opposition would not have made life more comfortable for our fellow citizens. It would have been an abdication of responsibility.

"Never, ever doubt the value of being in government."

Labour frontbencher Caroline Flint dismissed Mr Clegg's speech as "utterly meaningless".

"The fact is that from Tuition Fees to the VAT rise, NHS reorganisation to free schools, and elected police commissioners to an immigration cap, the Tory policies Nick Clegg and the Liberal Democrats used to oppose are being pushed through by the Conservatives and Liberal Democrats alike," she said.

"Liberal Democrat activists are locked in the boot of a car travelling in the wrong direction - taken for a reckless ride by a Tory-led Government.

"Those who worry about this need to show the courage of their convictions.

"In the Scottish, Welsh and local elections that means sending a message to David Cameron by voting Labour - the only progressive party on offer."

Health Secretary Andrew Lansley later attempted to reassure some of his critics within the coalition over the controversial changes.

He said he wanted to see if the Health and Social Care Bill, currently before Parliament, could make clear that "some of the things that people are concerned about will not happen", such as fragmentation of services and so-called cherry picking.

Asked on BBC's The Politics Show if his proposals were under review, he said: "Our proposals are always under review.

"As you put a Bill through Parliament you look carefully at how the legislation delivers in the context of the reforms that we have set out.

"We have already made changes, we are not sitting there going: 'Oh, we know the answers and nothing must change'."

Mr Lansley added: "It is very clear that there are concerns on the part of Liberal Democrats that were expressed in Sheffield on issues surrounding our being absolutely clear that competition won't lead to fragmentation, that we want to be sure that GPs and others can have rally integrated services, or for example that the process of accountability does deliver what we need in relation to local authorities and democratic accountability as well as transparency through the commissioning board.

"We will bring all that back and that is what (health minister) Paul Burstow has made clear and what Nick Clegg has made clear.

"We will look at if, in the Bill, we can make clear that some of the things that people are concerned about will not happen ... we are clear that (cherry picking of services) should not happen.

"There are various ways in the Bill we can stop that happening. So for example, the integration of services stops people taking individual procedures.

"Separately we are developing payment by outcomes so you can't just pick out one procedure and do that.

"And we have to make sure that the price that is paid by the NHS for individual operations doesn't allow for cherry picking. We are operating through the NHS to try and avoid that kind of advantage for the private providers."

He added that if the Government could "clarify and amend in order to reassure people" then it would do so.