NICK Clegg has insisted the coalition has the "courage" to fight on and boost areas like the North East.

The Deputy Prime Minister told The Journal that the Liberal Democrat and Tory coalition had to see through its plans to tackle the national deficit and get the economy back on track.

His comments come a year after Mr Clegg and David Cameron sealed the deal that led to the creation of the coalition Government.

But the Lib Dems have since suffered a drastic fall in support, appearing to take a large chunk of the blame for spending cuts, while both sides traded bitter accusations during the alternative voting referendum campaign.

Last week, the party suffered heavy losses in council elections – including in Newcastle – and defeat in the AV referendum.

But Mr Clegg said: “The North East for too long has suffered under Labour from an economy that was all about sucking up to the big banks in London and ignoring the things that the North East does such well like manufacturing.”

And that was why he was so “delighted” about the Government’s £1.4bn Regional Growth Fund, designed to boost private sector growth in areas like the North East which have a heavy dependence on the public sector. Last month, the Lib Dem leader met staff at Bridon International rope factory in Wallsend, which won millions of pounds from the Regional Growth Fund.

“That should be a real commitment to what the North East does so well, which is to lead the way in advanced manufacturing and green manufacturing,” said Mr Clegg.

“That is the way to create jobs that last for the young people in the North East.”

The Deputy Prime Minister admitted that he wished the Government could take decisions without controversy, but added: “The fact is because of what we inherited from Labour, we are borrowing £400m a day.

“And that is £400m more that could be used for hospitals, schools.”

He went on: “It is really a question of who is willing to do it with the necessary courage and determination and that is what we are doing.

“And Labour won’t own up to the responsibility for creating the problem in the first place. They have no alternative.”

Mr Clegg has also hit the airwaves to insist he will not quit the Government or demand the rewriting of the coalition agreement.

But he has made clear that he expects a change in tone in relations between the parties in the Government’s second year – something now being demanded across his party.