Liberal Democrat critics say Nick Clegg was 'outgunned' in negotiations on George Osborne's Autumn Statement

 

Nick Clegg has been hit by a Liberal Democrat grassroots backlash for approving below-inflation rises in most state benefits without winning a “wealth tax” from the Conservatives in return.

Liberal Democrat activists claimed their party leader had been outgunned in negotiations on George Osborne’s mini-budget. They said the next £10bn round of spending cuts to which the Liberal Democrats have signed up should abolish winter fuel allowances, bus passes and free television licences for wealthy pensioners.

Mr Clegg is prepared to argue for better-off pensioners to lose such benefits in a government-wide spending review next year. The cuts would not take effect until the 2015-16 financial year, which starts just before the May 2015 election. But David Cameron is unlikely to target pensioners, fearing that would  be seen as a breach of his  2010 election pledge to maintain their benefits.

The Liberal Democrats are likely to propose taking away the benefits in their manifesto for the 2015 election.

Clegg allies rejected the criticism from party members, saying he had pared down the Tories’ demands for £10bn of welfare cuts in the autumn statement to £3.7bn and blocked their plans for a freeze in most benefits, an end to housing benefit for under-25s and for state handouts for children to be limited to the first two in a family.

But some Liberal Democrat peers may oppose the legislation to keep the benefit rises below inflation for the next three years. David Hall-Matthews, chairman of the Social Liberal Forum, said the Tory elements of the Autumn Statement had “overwhelmed the Lib-Dem bits”.

He said it was “very disappointing” that the Liberal Democrats had lost the argument for a wealth tax but still agreed to curb benefits to the working poor. Although he blamed the Tories more than Liberal Democrat leaders, he said the result of the negotiations was “not great”.

The Liberal Reform group welcomed some measures in the statement but said: “We would much rather have seen the welfare bill reduced by stopping the numerous unnecessary payments made to those on high incomes.”

Start your day with The Independent, sign up for daily news emails
Voices
Barn owls are among species that could be affected
charity appeal
Sport
After another poor series in Sri Lanka, Alastair Cook claimed all players go through a lean period
cricketEoin Morgan reportedly to take over ODI captaincy as ECB finally wield the axe
Arts and Entertainment
a clockwork orange, stanley kubrick
film
News
news... you won't believe how bad their skills were
PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
ebooks
ebooksA year of political gossip, levity and intrigue from the sharpest pen in Westminster
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Recruitment Genius: Finance Director

£65000 - £80000 per annum: Recruitment Genius: Finance Director required to jo...

Recruitment Genius: Medico-Legal Assistant

£15000 - £25000 per annum: Recruitment Genius: This is a unique opportunity fo...

Ashdown Group: (PHP / Python) - Global Media firm

£50000 per annum + 26 days holiday,pension: Ashdown Group: A highly successful...

The Jenrick Group: Quality Inspector

£27000 per annum + pension + holidays: The Jenrick Group: A Quality Technician...

Day In a Page

Homeless Veterans appeal: 'You look for someone who's an inspiration and try to be like them'

Homeless Veterans appeal

In 2010, Sgt Gary Jamieson stepped on an IED in Afghanistan and lost his legs and an arm. He reveals what, and who, helped him to make a remarkable recovery
Could cannabis oil reverse the effects of cancer?

Could cannabis oil reverse effects of cancer?

As a film following six patients receiving the controversial treatment is released, Kate Hilpern uncovers a very slippery issue
The Interview movie review: You can't see Seth Rogen and James Franco's Kim Jong Un assassination film, but you can read about it here

The Interview movie review

You can't see Seth Rogen and James Franco's Kim Jong Un assassination film, but you can read about it here
Serial mania has propelled podcasts into the cultural mainstream

How podcasts became mainstream

People have consumed gripping armchair investigation Serial with a relish typically reserved for box-set binges
Jesus Christ has become an unlikely pin-up for hipster marketing companies

Jesus Christ has become an unlikely pin-up

Kevin Lee Light, aka "Jesus", is the newest client of creative agency Mother while rival agency Anomaly has launched Sexy Jesus, depicting the Messiah in a series of Athena-style poses
Rosetta space mission voted most important scientific breakthrough of 2014

A memorable year for science – if not for mice

The most important scientific breakthroughs of 2014
Christmas cocktails to make you merry: From eggnog to Brown Betty and Rum Bumpo

Christmas cocktails to make you merry

Mulled wine is an essential seasonal treat. But now drinkers are rediscovering other traditional festive tipples. Angela Clutton raises a glass to Christmas cocktails
5 best activity trackers

Fitness technology: 5 best activity trackers

Up the ante in your regimen and change the habits of a lifetime with this wearable tech
Paul Scholes column: It's a little-known fact, but I have played one of the seven dwarves

Paul Scholes column

It's a little-known fact, but I have played one of the seven dwarves
Fifa's travelling circus once again steals limelight from real stars

Fifa's travelling circus once again steals limelight from real stars

Club World Cup kicked into the long grass by the continued farce surrounding Blatter, Garcia, Russia and Qatar
Frank Warren column: 2014 – boxing is back and winning new fans

Frank Warren: Boxing is back and winning new fans

2014 proves it's now one of sport's biggest hitters again
Jeb Bush vs Hillary Clinton: The power dynamics of the two first families

Jeb Bush vs Hillary Clinton

Karen Tumulty explores the power dynamics of the two first families
Stockholm is rivalling Silicon Valley with a hotbed of technology start-ups

Stockholm is rivalling Silicon Valley

The Swedish capital is home to two of the most popular video games in the world, as well as thousands of technology start-ups worth hundreds of millions of pounds – and it's all happened since 2009
Did Japanese workers really get their symbols mixed up and display Santa on a crucifix?

Crucified Santa: Urban myth refuses to die

The story goes that Japanese store workers created a life-size effigy of a smiling "Father Kurisumasu" attached to a facsimile of Our Lord's final instrument of torture
Jennifer Saunders and Kate Moss join David Walliams on set for TV adaptation of The Boy in the Dress

The Boy in the Dress: On set with the stars

Walliams' story about a boy who goes to school in a dress will be shown this Christmas