choosing where their money is spent - unlike normal taxpayers - and the Treasury says it is losing out on £50-100 million a year.

Under the plans, previously uncapped tax reliefs - including on charitable donations - would be capped at £50,000, or 25% of a person's income, if that was higher, from 2013.

'Great privilege'

The government has faced a difficult few weeks since the Budget, with criticism of plans to end age-related tax allowances for pensioners and to impose VAT on pasties, as well as the charity move.

Of course, governments get into situations where we have bumps and scrapes Nick Clegg, Deputy Prime Minister

Since coming into coalition, Mr Clegg himself has also faced harsh criticism, "most notoriously", as he himself put it, over the decision to raise tuition fees- seen as a reneging on a Lib Dem manifesto promise.

During an interview with BBC Radio 4's Today programme, the deputy PM was asked whether he was enjoying being in government.

"Yes. It's a great privilege. Of course it's tough, but it's a great privilege," he replied.

It was put to him that ministers had been constantly on the defensive in recent weeks.

"I'm not in the slightest bit defensive... about the fact that this very month I've launched a youth contract that will help every 18 to 24-year-old who's out of work to earn or learn," he said.

"I'm not in the slightest bit defensive about the fact that pensioners have received the largest cash increase this month in the state pension ever.

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