NICK Clegg has declared the Liberal Democrats can bounce back in the North East after what he called a "rollercoaster" year.

In an exclusive interview with The Journal, the Deputy Prime Minister said his party could win back Newcastle City Council after losing it to Labour in May’s local elections.

And he promised a “single-minded” focus within the Government on boosting Newcastle economy’s to help the region ahead of a visit to the city today to talk to party members.

But he appeared to rule out any prospect of Northern Rock returning to its building society roots rather than being sold by the Government.

Speaking in his Whitehall office, Mr Clegg said he wanted to listen to local activists and address their concerns after a tough year.

“This has been a rollercoaster year or so for the Liberal Democrats,” said the party’s leader.

“We have shown great courage, but I think it has cost us short-term popularity.

“From time to time, I think it is right for political parties to say that we are going to put the national interest first.

“And in the long run, I think people will come to respect that. But that’s something I need to obviously talk to members about.”