Clegg survives first test

Liberal Democrats leader Nick Clegg has survived the first serious test of his leadership, cutting off internal opposition to secure backing for a significant policy shift.

The party has backed plans to reduce public spending to fund tax cuts despite two senior MPs calling for the cuts to be spent on services.

The party leadership wants to use some of a projected £20 billion slashing of Labour spending to cut bills for low and middle income earners in a bid to snatch the votes of hard-pressed families struggling to pay food and fuel bills.

Left-leaning rebels, spearheaded by frontbench science spokesman Evan Harris and former parliamentary party chairman Paul Holmes, won vocal support for their demands during a hotly-contested 90-minute debate.

"What should I say to constituents of mine who tell me they want to help their sons buy basic pieces of equipment when their sons are sent to fight in Iraq: 'well, we'll give you a penny off income tax and you can make up for the defence cuts yourself'?" Mr Holmes asked, warning the party would be painted as a "Tory twin".

But Treasury spokesman Vince Cable warned their amendment would have "driven a coach and horses" through the "progressive and radical" plans and said the public was demanding the chance to keep more of their own money to spend as they saw fit.

Party members eventually voted down the amendment and backed Mr Clegg's 'Make It Happen' mission statement for the party unchanged, which his chief of staff Danny Alexander hailed as a "compelling agenda for the change Britain needs", almost unanimously.

© Independent Television News Limited 2008. All rights reserved.