Mr Clegg says when the Lib Dems came in to government the "big question" was: "Could we rescue the British economy?"

He adds: "Liberal Democrats, we have been tested and we passed the test. We rescued the economy. We held our nerve. And make no mistake, the recovery would not be happening without the Liberal Democrats."

More audience applause.

"The Conservatives are a threat to education," Mr Clegg says, adding "they will take billions of pounds away from existing schools in order to create 500 more free schools, regardless of whether or not they are actually needed at all."

He adds: "And they will cut, drastically, the money that goes to nurseries, sixth forms and colleges.

"...cows moo. Dogs bark. And Tories cut. It's in their DNA."

Mr Clegg says Labour and the Tories "are in a defensive crouch, hoping to win by default, not because the British people share their vision but because they dislike them a little less than the other guy".

The audience laugh when he says: "Look at the way David Cameron tried to dodge the leaders' debates by hiding behind the Green Party. It's the greenest thing he's done since he's been in government."

Nick Clegg launches a scathing attack on his Conservative coalition partners and the Labour Party, which goes down very well with Lib Dem activists in the hall. "Everywhere you look there is blame and division," he says, adding: "It's in Theresa May's Go Home vans. In the glint in George Osborne's eye as he announces that the working age poor will bear the brunt of the cuts. It's in the red-faced bluster of the Tory right wingers who are determined to scrap the Human Rights Act and drag us out of Europe. It's in the 'us versus them' scaremongering of the Labour Party, as they condemn every decision to balance the books as a betrayal and then make wild predictions about mass unemployment or the death of the NHS that they know are not true."

Nick Clegg says that on average, three children in every classroom has a mental health condition. "You heard me right, three children in every classroom. In Britain. In 2015. That cannot be allowed to carry on," he says.

He then left his script to note his "immense admiration" for ministerial colleague Norman Lamb, who he said had reacted with "dignity and courage" to "public scrutiny" this morning a reference to a Sunday Mirror story about Mr Lamb's son Archie (see below).

Clegg says that one of the proudest moments of his time in government - so far - was at the end of last year, when the latest primary school results were published. "They showed children from the poorest backgrounds getting their best ever results and the gap between them and their better off classmates narrowing," he said, and argued that this was because of a Lib Dem government.

"I want every child to leave primary school to be confident at reading - ending child illiteracy for good," he adds.

"A stronger economy and a fairer society, with opportunity for everyone. It's not just a slogan to stick on leaflets or adorn conference auditoriums, it's a destination. That is the sort of Britain I want us to be," Clegg says to rapturous applause.

Nick Clegg is rallying the Lib Dem troops in Liverpool (with a possible nod to the old Chumbawamba hit): "We take our hits on the chin. When we get knocked down, we get up, brush ourselves off and carry on," says the Lib Dem leader, to applause from the hall.

Tweets, external: Lord Ashdown on Tim Farron: "Tim's a very able guy but at the moment judgement is not his strong suit." (the audio sounds pretty damning)

Image source, PA

On the subject of Wednesday's Budget and the expected pledge to help pensioners cash in their annuities, the architect of the policy Lib Dem Pensions Minister Steve Webb - who grabbed headlines last year when he suggested pensioners could blow the money on a Lamborghini if they wanted to - is attempting to make sure his party gets due credit for it. He said: "As a Liberal I believe that today's pensioners should have the same freedoms as tomorrow's pensioners to spend their hard earned savings as they wish. That's why I proposed this measure and I am delighted to have secured it in this week's Budget."

All eyes on Liverpool now, as we get ready for Nick Clegg's big speech to his party's spring conference. Fashion lovers might like to know that Mr Clegg's wife Miriam will be wearing a Venus dress in bubblegum pink, brown shoes from Uterque and a pale pink coat from Zara (according to our resident fashion expert Paul Twinn). Mrs Clegg wore the dress at the interview with Red and to introduce President of Mexico Peña Nieto at the Canning House lecture. Mr Clegg will be wearing a Hackett suit an M&S shirt and black shoes.

Shadow chancellor Ed Balls has put out a statement after challenging George Osborne to a head-to-head debate. It says: "It's good that George Osborne shook hands on a head-to-head TV debate with me during the election campaign. But he's already trying to wriggle out of that by insisting on bringing his deputy along.

"If George Osborne wants a debate with all the main parties, as well as a head-to-head debate, that's fine by me. But we need a head-to-head debate because there's a big choice between an extreme Tory plan which will put our NHS at risk and Labour's better plan which will put working families first and save the NHS."

Former Chancellor Ken Clarke has said he would be "fiercely opposed" to any deal with UKIP after the election. Speaking on Sky News, the Conservative veteran said it would be "an extraordinary thing to do, to enter into an agreement with a party that is just angry protest. It's not a party that any serious governing parties should enter into deals with."

Would Ed Davey accept a seat in the Lords, asks Andrew Neil, if he should lose his Kingston and Surbiton seat (majority 7,560) in the forthcoming general election. "Good hypothetical question," Mr Davey retorts "but the real question in people's minds is who is going to form the next government".

Lib Dem Energy and Climate Change Secretary Ed Davey was grilled by Andrew Neil about former Lib Dem President Tim Farron's comment that their party would get "two out of 10" for their handling of the coalition. Mr Davey gave a spirited, if standard, defence of the coalition. Mr Farron and Mr Davey are both regularly tipped to be the party's next leader. Mr Farron - who also said the coalition would continue to damage the Lib Dems for decades - was earlier slapped down by Lib Dem former leader and election chief Lord Ashdown. "I think his well-known ambitions would be better served with a little more patience and a little more judgement," he told Pienaar's Politics. "Tim is a very able guy but judgement is not his strong suit."

One of Labour's chief criticisms is that the Tories would cut public spending down to a similar level seen during the 1930s. Asked by Sunday Politics presenter Andrew Neil how much was spent in the 1930s Caroline Flint struggled to find answer. "A lot less," she begins to say before being interrupted by Mr Neil who calculates that in today's money to pare back spending to the level in that decade would mean the equivalent of a £650bn cut. You know that's a nonsense?, he asks.

Andrew Neil presses shadow energy secretary Caroline Flint on why "business" is not mentioned on her election pledge card. She insists that business is something her party cares about. She says Labour if elected would push through plans to help businesses such as making sure young people have access to apprenticeships and that "small businesses benefit from a clock on their business rates".

Political editor for the Sunday Times, Tim Shipman, tells the BBC's Sunday Politics that one thing we will hear about during Wednesday's budget announcement is the idea of a "northern powerhouse". "It sounds like a 1970s prog rock group", he quips, but says it is the Conservative's plan to claw back some north-west marginal seats in the M62 corridor.

The Lib Dem Health Minister Norman Lamb has started his speech at the Lib Dem Spring Conference with a reference to today's Sunday Mirror story, external about his music producer son Archie, who allegedly faced a blackmail threat after a video emerged of him appearing to take drugs.

"My family has had its own experience of mental health problems. Our eldest son diagnosed with Obsessive Compulsive Disorder when he was 15. My family is not unique. Our experience has made me even more determined to bring mental health out of the shadows," he said.

He thanked activists for their words of support for him this morning and received a warm round of applause from them.