Clegg warns of 'difficult' 2009

Nick Clegg says 2009 will be a year of hardship for many

The next year will be a "difficult" one for thousands of people at risk of losing their jobs and homes, Lib Dem leader Nick Clegg has warned.

The economic downturn was a crisis that could only be tackled by new thinking, which neither Labour nor the Tories were able to offer, he said.

The Lib Dems are calling for large tax cuts for those on low and middle incomes to help them and the economy.

Extra help for families with young children was also needed, he added.

'Tough times'

Mr Clegg promised announcements in early 2009 on proposed increased investment in childcare and reduced class sizes for infants.

In his new year message to party members, Mr Clegg said people were suffering because of the "economic mess" caused by Labour.

Both Labour and the Conservatives keep doing the same thing over and over again and expect something different to happen Nick Clegg

While the government did not have the "right ideas" to get the economy back on track, he claimed the Conservatives were not prepared to help those in trouble.

"Britain is facing a difficult year," he said.

"Every day, 200 families are now at risk of losing their homes and three million people could be out of a job."

The difficulties offered the possibility for lasting change but only if leaders were prepared to do things differently.

"Both Labour and the Conservatives keep doing the same thing over and over again and expect something different to happen."

Different approach

Mr Clegg has proposed spending £12.5bn - the estimated cost of the government's temporary VAT cut introduced earlier this month - on measures to insulate homes, support renewable energy and improve public transport as part of a "green road" to economic recovery.

He also promised new ideas to help parents with children to get back to work and to improve the education of children from disadvantaged social backgrounds.

"Perhaps the greatest danger of today's recession is that it will mortgage the future of our children," he added.

"We must prevent that happening."

Labour have accused the Lib Dems of being prepared to cut public services to fund income tax cuts, something which they have denied.