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.

The Deputy Prime Minister is facing a grassroots revolt from Liberal Democrats against signing up to a detailed package of public spending cuts during the two years after the 2015 general election. 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.