Latest research from the Department for Energy and Climate Change (DECC) shows that so far this financial year companies have announced plans for almost £2.5bn of investment in renewable energy projects in the UK, with the potential to create almost 12,000 jobs across the country.

A separate report to the European Commission on renewable energy progress that showed that the UK:

Latest research from the Department for Energy and Climate Change (DECC) shows that so far this financial year companies have announced plans for almost £2.5bn of investment in renewable energy projects in the UK, with the potential to create almost 12,000 jobs across the country.

A separate report to the European Commission on renewable energy progress that showed that the UK:

We have had to make some very difficult decisions, but they've been the right ones for the long term good of our country.

But that economic rescue mission is not over yet. That's why, thanks to the Liberal Democrats, the Coalition has been helping people get through these difficult times with measures to make life fairer and easier.

2011 was the year we lifted nearly a million low paid workers out of paying income tax altogether and cut taxes for 23m people - because I believe putting money back into peoples pockets makes all the difference.

It was the year more than a million children got a fairer start in life, with extra support at school through our Pupil Premium and free early years education for toddlers - because I believe that helping the youngest take their first steps in life makes all the difference.

It was the year we guaranteed pensioners a decent increase in their pension - because I believe dignity in retirement makes all the difference.

Throughout, we have taken big long-term decisions that will change the way our economy works for the better - rebalancing it away from the City of London towards stronger, more sustainable growth.

And next year we will do more. The world's first Green Investment Bank putting millions into green jobs and growth; our youth contract to get every young person out of work earning or learning; more apprenticeships than this country has ever had before; and we will take further steps to make our tax system fairer too.

What we're doing as a party, and as a Coalition, it's not easy, but it's right. We are putting the interests of the country first, and we have taken the first steps towards building a fairer, greener and more liberal country.

The next year will be one that poses many great challenges for everyone in Britain, but I know we must continue to do what's right for our country.

And with that, I wish you all a very happy New Year.

Nick Clegg MP
Leader of the Liberal Democrats and Deputy Prime Minister

Making UK banks safer

Business Secretary Vince Cable confirmed this week that the Coalition government is now committed to implementing the Vickers report recommendations in full, in line with the timing suggested by that report.

The Coalition set up the Vickers Commission, as advocated by Vince, to deal with the unsafe structure of UK banking. It reflected a long-standing Liberal Democrat criticism of banking that caused: financial instability - the biggest financial crisis of modern times; unfairness - pay and bonuses reaching record levels; and inefficiency - credit failing to reach the productive parts of the economy.

Vickers was a vital part of the Coalition response to Labour's financial crisis, alongside reform of financial regulation, a permanent Bank Levy (raising more each year than Labour's Bonus Tax), and the most transparent pay regime of any major financial centre.

"We all know that times are tough for Government finances. In order to sort out Labour's mess there has to be a mixture of increasing tax revenue and restricting the growth of spending. At the same time the taxman must collect all the tax that is due. Special treatment or even the perception of special treatment for big corporations is simply unacceptable.

"It is sometimes understandable in highly complex tax disputes that HMRC settles out of court. But when it comes to public money being lost through vast tax settlements, the taxman needs to be more transparent. The public must be able to see they how they are negotiating with big companies so they can see if special treatment is being given."

Stephen Williams has tabled an Early Day Motion calling for a general anti-avoidance rule within the next Finance Bill. It has been sponsored by David Laws, Simon Hughes, Tim Farron, Lorely Burt and Tom Brake.

First, let me thank Demos and the Open Society Foundation for inviting to me to speak. I can think of no better moment to talk about the open society, and the urgent need to rally to its defence.

The values of the open society - social mobility; political pluralism; civil liberties; democracy; internationalism - are the source of my liberalism. And reflecting on the events of the last year, it is clear to me that they have rarely been more important than they are today.

Because we are at a critical, and potentially dangerous, moment - both in the world at large and here in the UK. History teaches that, at times of deep economic uncertainty, societies become more exposed to the forces of division - populism, insularity, separatism, an 'us versus them' mentality.

Rather than remaining open to the world and facing the future, societies can begin to turn inwards and lose confidence in progress.

The danger in the UK is that the forces of reaction and retreat overwhelm our instinct for openness and optimism. That we succumb to fear - the greatest enemy of openness - in these dark economic times.


So today I will set out my vision of an open society - at the heart of liberal politics - and identify the key battles that we face to promote fairness, liberalism and openness in these difficult days.

We British are an open-spirited people. But we are hobbled by closed institutions. By instinct we believe in fair play and giving everyone a fair chance in life.

But our politics and economy are distorted by unaccountable hoards of power, wealth and influence: media moguls; dodgy lobbyists corrupting our politics; irresponsible bankers taking us for a ride and then helping themselves to massive bonuses; boardrooms closed against the interests of shareholders and workers. The values of the hoarders are increasingly out of touch with the spirit of openness alive in the UK.

It is not often you'll hear me say this, but I agree with Tony Blair. In his words "the big difference is no longer between left and right, it is between open and closed".

So what is an open society?

It is a society where powerful citizens are free to shape their own lives. It has five vital features:

Power to the cities

The Deputy Prime Minister announced last week a dramatic shift in power from Whitehall to the core cities of Birmingham, Bristol, Leeds, Liverpool, Newcastle, Nottingham, Manchester and Sheffield. In a speech to IPPR North in Leeds, Nick Clegg gave details of the proposed plan.

The 'City Deals' will see government offer greater freedom and autonomy. In return, cities must guarantee that they will provide adequate leadership and accountability, improve efficiency and be innovative in their approach.

No more waiting for Whitehall approval, cities will get one consolidated capital pot to direct as they see fit. The Coalition has committed to localising business rates and introducing Tax Increment Financing to allow councils to borrow against those revenues to invest in development. The bulk of business rates should be back in local hands by April 2013.

Cities will also get the right to offer business rate discounts. So, for example, if a particular city would benefit from more creative industries, to compete with its neighbours, or to make the most of its colleges and universities, it will be able to adjust its rates to attract companies working in design, fashion, music, the arts.

On transport, under the new arrangements cities will only have to show that a specific scheme is feasible, achieves value for money, is transparent and accountable, and contributes to growth. Cities will be able to be ambitious about what they can deliver for their area. Instead of Transport for London, it could be Transport for Leeds or Birmingham, or Bristol.

Housing and regeneration decisions that used to lie with Regional Development Agencies and were then sucked up into the Homes and Community Agency will finally be will be handed down to the cities. Cities can then get developers building and businesses locating in the parts of town that need them most.

On broadband, £100m of seed funding will be available for them to work with Virgin, BT and other suppliers, in order to become truly digital.

Currently many small companies say they would like to take on an apprentice but they can't afford it or they find the national scheme too bureaucratic. Cities will be able to create New Apprenticeship Hubs, bringing together businesses looking for an apprentice and Colleges who can refer their students. There will be research funding to establish where skills gaps lie - whether in engineering, or IT, or management, - so cities can work with the colleges to prioritise filling those gaps.

Cities will also be able to bring local services together so that instead of being passed from pillar to post between the job centre, the town hall, the careers adviser - all of that can be done under one roof where it makes sense to do so.

"We are launching a series of deals to recast the relationship between central government and our cities," said Nick, "in what we hope will be an unprecedented transfer of power, to unleash city power, to boost entire regions and to get our national economy growing. To begin correcting the dangerous imbalance in the economy.
"Our cities will need to shoulder some of the risks - where big projects are involved, for example, government will not do all the underwriting. We will expect you to work together and we will need to see results.
"The Coalition wants to give cities the key to their future," concluded Nick. "We know the UK's prosperity depends on it and we stand ready to do our bit."

"A number of faiths have made it very clear to me and others that they want to allow same-sex couples to have their civil partnership ceremony in their places of worships.

"As a Liberal Democrat, I strongly believe that we should make this possible and that is why the Coalition Government is doing the right thing in allowing these faiths to celebrate the love that two people have for each other.

"From the outset, we made it clear that we would not force any faith to do so and the House of Lords have today recognised that there are appropriate safeguards.

"I look forward to working equally constructively with all interested people and organisations as we move ahead with the Coalition Government's plan to open up marriage to same-sex couples. Our commitment to equality runs deep, as next year's consultation on equal marriage will show."

"Although Iraq has slipped down the British political agenda it should never be forgotten that the cost of the disastrous decision to join the United States in military action against Iraq was and remains enormous.

"Unjustified optimism based on inadequate intelligence and unthinking determination to remain close to the Bush administration led the United Kingdom into one of the most ill-advised foreign affairs decisions in living memory.

"The only hope is that we have learned lessons from a badly judged venture. The implications of the Iraq decision should inform every policy decision to commit British troops in the future."