The Liberal Democrats condemned much of Conservative Chancellor George Osborne's Budget as the party moved to keep alive hopes of a possible coalition with Labour in May.

The Lib Dems hit out at Tory plans to cut public spending to 1960s levels, raising the spectre of "Cathy Come Home" the infamous 1966 television drama which triggered public outrage over homelessness.

Today (FRI) Lib Dem leader Nick Clegg will use a speech in Scotland to say that the Lib Dems can and will "win" in May's General Election.

Despite dire opinion poll ratings, Lib Dem MPs hope they could still hold the balance of power at Westminster.

Experts predict that despite plummeting support the party could hold on to as many as 35 seats in May.

Mr Clegg will also say that one of those will be Gordon, where the rival candidate is Alex Salmond.

The Deputy Prime Minister has insisted the Lib Dems are "equidistant" between its two larger rivals and could enter coalition with either.

Yesterday his party used an "alternative Budget" to edge away from the cuts outlined by Mr Osborne and potentially closer to Labour.

Lib Dem MP and Treasury minister Danny Alexander condemned what he said were the Chancellor's unnecessary and "outrageous" planned cuts.

He said his party would not impose less austerity than the Tories but more fiscal responsibility than Labour.

In a highly unusual move, Mr Alexander launched his alternative Budget from the Commons chamber, in what Labour denounced as an abuse of power.

Mr Alexander that it was proper to launch the document from the Dispatch Box, because it had been produced by Treasury officials.

But the move infuriated Conservative backbenchers.

Tory MP Adam Afriye told Mr Alexander that he was "stunned" by the statement, and accused the Lib Dems of "an absolute betrayal of the role they have played in government".

In his speech to the Scottish Liberal Democrat conference in Aberdeen today Mr Clegg will say that Liberal Democrats 'can and will win' in May.

The Liberals will do much better "than anyone thinks", he will forecast, rallying his party's troops by telling them that "resilience will see off the SNP challenge in the seats we hold".

This even extends to the seat of Gordon, where former SNP First Minister Mr Salmond is hoping to make his return to Westminster.

He will also say his party's pledged reforms to the NHS in England would free up an extra £800m for Scotland, which he said should be spent on the health service north of the border.