Clegg issues political challenge

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He used his first conference speech at the head of the party to rule out any coalition in the event of a hung Parliament without a promise of major constitutional shake-up.

Mr Clegg also signalled a shift towards a tax-cutting agenda, pledging to find ways to channel any spare public money into reducing individuals' bills rather than boosting public services.

And he made light of last week's Commons revolt by a quarter of his MPs over the EU referendum as he attempted to end the furore over his tactics.

Speculation on the third party's position over possible coalition has intensified with the prospects of no one party gaining an overall majority at the next election considered at its highest for many years.

Mr Clegg had already signalled a willingness to do a deal with the Tories as well as with Labour, but made clear it would require more than the party's traditional demand for electoral reform.

"Will I ever join a Conservative government? No. Will I ever join a Labour government? No," he told activists gathered in Liverpool for the party's spring conference. "I will never allow the Liberal Democrats to be a mere annex to another party's agenda. But am I interested in building a new type of government? Yes.

"Based on pluralism instead of one party rule? Yes. A new system, that empowers people not parties? Yes."

Party sources indicated that Mr Clegg would not settle simply for seats at the cabinet table and would as a minimum seek "a review of all our constitutional and political arrangements".

He repeated demands for a 100-strong citizens' jury to join forces with parties, churches and other groups in a Constitutional Convention to "redesign the way Britain is governed".