Liberal Democrats set out plans to balance the books

The Liberal Democrat plan to balance the books is one with a "heart as well as a brain."

Nick Clegg will spell out in detail how the Liberal Democrats will deal with the country's deficit by setting out who is going to be asked to contribute more and where cuts will fall.

Ahead of the party's manifesto launch on Wednesday, Nick will present a challenge to Labour and the Conservatives to match the Liberal Democrat commitment to be open and honest with the British public about what is necessary to deal with the deficit fairly by 2017/18.

Nick said:

"We have a plan to build a stronger economy and a fairer society, which means we will cut less than the Conservatives and borrow less than Labour.

"It's a plan to protect our economy and invest in our schools, hospitals and public services... a plan with a heart as well as a brain."

Nick will also point to the party's key priorities in the first two years of the next parliament, including further income tax cuts and investing in our NHS. These include:

• Abolish the Tory Share for Rights scheme saving around - raising £200m
• Place greater restrictions on Capital Gains Tax exemptions - raising £700m
• Closely align dividend tax rates with marginal income tax rates for higher and additional rate taxpayers - raising £1.2bn
• Cap working age benefits uprating at one per cent for two years -raising £160m
• Removing Winter Fuel Payment and free TV licences from currently eligible higher rate taxpayers - raising £125m