The Conservative Party and Liberal Democrats have formed a coalition government. Policy details will be released later.The Conservatives and Liberal Democrats have released a document setting out the agreements reached between the two parties on a range of issues.These are the issues that needed to be resolved between us in order for us to work together as a strong and stable government. It will be followed in due course by a final Coalition Agreement, covering the full range of policy and including foreign, defence and domestic policy issues not covered in this document.

You can read the docuemnt in full using the document viewer below or alternatively click here to download the document in PDF format. Here is what is known so far:

THE ECONOMY
• Emergency budget within 50 days
• "Accelerated" action to cut the budget deficit: £6bn of spending cuts this year
• Measures to promote financial stability and support business growth
• Next year's 1% National Insurance tax rise to be scrapped
• Phased reform of tax system. Those on less than £10,000 to pay no tax
• New ministerial committee to look at "structural" banking reform
• New tax on financial transactions

EDUCATION
• Investment to reduce class sizes for children from poorer backgrounds
• New independent schools in state sector - "free schools" - to be set up

POLITICAL REFORM
• Referendum on the Alternative Vote system for general elections
• Fixed-term Parliaments - next election in May 2015
• Cut in number of MPs and equal size constituencies
• Right of the public to "recall" corrupt MPs
• Ban on "non-doms" sitting in Parliament
• Reform of political donations and party funding

FOREIGN POLICY
• "War Cabinet" to oversee Afghan mission
• National Security Council to handle security policy
• Strategic defence review to begin as soon as possible
• Trident renewal to go ahead but cost scrutinised
• No further powers ceded to EU without referendum
• UK not to join euro for foreseeable future

CIVIL LIBERTIES
• Great Repeal Bill including abolition of ID cards

IMMIGRATION
• Cap on immigration from outside the European Union

ENVIRONMENT
• Aviation passenger duty replaced by plane tax

FAMILIES
• Tax break for married couples and civil partners

Tags: Liberal Democrats