The Independent is reporting that

A government-wide spending review is to be scaled back because Nick Clegg is refusing to commit to billions of pounds of further cuts in the welfare budget…whilst  the Liberal Democrats are likely to fight the election on a pledge to clear the remaining deficit through tax rises such as a mansion tax on homes worth more than £2m and a cut in the 40 per cent tax relief on pension contributions enjoyed by higher rate taxpayers.

Additionally for Nick Clegg, Activists are threatening to table an emergency motion at the party’s autumn conference in an attempt to prevent the leadership supporting a new round of cuts, which they fear would be deeply unpopular.

The Times are saying

Evan Harris, the former Lib Dem MP and a figurehead of the grassroots, said that no further pacts should be made with the Conservatives over spending.

The Independent, then notes, this could also lead to an opportunity for the Tories

Mr Cameron and Mr Osborne may outline proposed cuts at the 2015 election to show how the Tories would “finish the job” of clearing the deficit and put Labour under pressure to spell out how quickly it would balance the nation’s books. The move would also be designed to reassure financial markets that the Tories were still prepared to take “tough decisions” on spending.

TSE