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Nick Clegg says those taking the blame include Europe, Brussels, foreigners, immigrants the English and onshore wind farms
The Liberal Democrats will go to the next election with their "heads held high", Nick Clegg has said.
He told his party conference in Glasgow he would not "seek to distance" the party from the coalition's record.
The deputy prime minister attacked the "bitter tribalism" of British politics and told activists in Glasgow the party had to "make our voice heard".
He also announced the first national waiting time targets for people with mental health problems.
People with depression should begin "talking therapy" treatments within 18 weeks, from April.
Young people with psychosis for the first time will be seen within 14 days - the same target as cancer patients.
Also at the Lib Dem conference:
- Mr Clegg said the Lib Dems would cut income tax for 29 million people if they were in government after the election
- Care Minister Norman Lamb said he had not "ruled out standing for the leadership" of the party - when Nick Clegg is no longer in the role
- Business Secretary Vince Cable called for a "rebalance" of tax and spending cuts in order to eliminate the deficit
- Scottish Secretary Alistair Carmichael said further devolution of powers to Scotland would "unlock the progress to federalism across the whole of the United Kingdom"
BBC political editor Nick Robinson said Mr Clegg had presented himself in the speech as the man to take on what he sees as the "increasingly extreme" big two parties, while attempting to "break through the anger" people feel at the Lib Dems - and to get voters to think again.
Opening his speech, the deputy prime minister said Britain would not be intimidated by Islamic State, paid tribute to murdered hostages Alan Henning and David Haines, and declared his "immense gratitude" for Britain's Armed Forces.
Turning to the domestic scene, he said Labour leader Ed Miliband and Chancellor George Osborne's conference speeches "could not have been more helpful if they had tried" to the Lib Dems' cause, with one forgetting the deficit and the other unveiling tax cuts for the wealthy.
Mr Clegg also said the SNP and UKIP were part of a "growing pick-a-side" politics.
He said the "politics of fear" was "seductive and beguiling", but was in fact "a counsel of despair".
He said he had chosen to debate on television against UKIP leader Nigel Farage - whose name he pronounced with a French lilt - because "someone has to stand up for the liberal Britain in which we and millions of decent, reasonable people believe".
"If the Liberal Democrat voice is marginalised in British politics our country will be meaner, poorer and weaker as a result," he predicted.
"We must not and cannot let that happen. We must make our voice heard."
The Liberal Democrats would borrow less than Labour, and cut less than the Tories, he said.
He outlined a string of coalition government measures which he said were "designed and delivered by Lib Dems", including raising the income tax allowance, parental leave reforms and same-sex marriage.
Mr Clegg said he "may no longer be the fresh faced outsider", and the Lib Dems no longer "untainted... by the freedom of opposition".
But the party still stood for "a different kind of politics".
Only the Liberal Democrats could deliver both fairness and a strong economy, he said.
And he directly criticised Conservative Home Secretary Theresa May, who had accused him of jeopardising public safety by blocking new data-monitoring powers.
Mr Clegg accused her of "playing party politics with national security".
He added "Stop playing on people's fears simply to try and get your own way. Your Communications Data Bill was disproportionate, disempowering - we blocked it once and we'd do it again."
A Lib Dem government would introduce "five green laws", on carbon reduction, green space and energy efficiency, Mr Clegg pledged.
He said he would not set out "red lines" in the event of a hung Parliament, but said "people do have a right to know what our priorities are".
He pointed to raising the income tax threshold to £10,500, saying Labour "would never have made the change" and the Conservatives were "explicit" that it was not their priority.
Mr Clegg said he thought Britain would have more coalitions in the future, and rounded off his speech by saying the Lib Dems were "the only party who says 'no matter who you are, no matter where you are from, we will do everything in our power to help you shine'".
'Cinderella'
The mental health pledge, which will be funded by reallocating money from other parts of the health budget, is coalition government policy, rather than a Lib Dem aspiration.
But Mr Clegg also pledged to extend the extra money for mental health in the next Parliament if the Lib Dems are in government, to introduce similar targets for conditions such as bipolar disorder and eating disorders.
He told Lib Dem activists the £120m plan was the first step in reforming "Cinderella" mental health services.
Under the plan, suicidal patients get the same priority as those with suspected heart attacks.
Analysis by BBC Health Correspondent Nick Triggle
Playing devil's advocate, you could say the government has set its mental health targets in the areas and at the levels it knows the NHS can achieve.
Already nearly two-thirds of patients get access to talking therapies within 28 days. So asking the NHS to ensure 95% are seen within 18 weeks does not seem a big ask.
A similar thing could be said for the two-week wait for help for people experiencing psychosis for the first time.
Nonetheless, those working in the sector are still delighted.
Why? To understand that, you have to consider where mental health stands in the pecking order of the NHS.
Some refer to it as the Cinderella service or poor cousin. Figures show that the condition gets 11% of the budget, but accounts for 28% of the disease burden.
The hope now of many involved in providing such services is that the attention the targets will bring will lead to more money and resources being ploughed into care. Read more from Nick.
Earlier, Care Minister Norman Lamb said it was a "watershed" moment that achieved "genuine equality between mental health and physical health".
He told BBC Radio 4's Today programme: "This is a simple fact of discrimination. If you have cancer, you get access to a specialist within two weeks. If you have a first episode of psychosis, it's completely haphazard and that is outrageous. There's a moral and an economic case to do this."
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Norman Lamb: "Moral and economic reasons" for mental health targets
Half of the £1bn Mr Clegg announced for the NHS at the start of his party conference conference would be spent this way.
The Lib Dem leader is attempting to set out a distinctive message on the NHS ahead of May's general election and will make his mental health reforms a "red line" issue in any coalition negotiations.
'Ending discrimination'Mr Clegg said the commitment would go "smack bang on the front page of our next manifesto".
He said: "Labour introduced waiting times in physical health - we will do the same for the many people struggling with conditions that you often can't see, that we often don't talk about, but which are just as serious."
He added: "These are big, big changes. And in government again the Liberal Democrats will commit to completing this overhaul of our mental health services - ending the discrimination against mental health for good.
Mental health problems are estimated to cost the economy around £100bn a year and around 70 million working days are also lost annually.
'Watershed moment'The announcement was welcomed by mental health charities.
Mark Winstanley, chief executive officer at Rethink Mental Illness, said it had "the potential to improve the lives of millions", while Centre for Mental Health chief executive Sean Duggan said it would "help to overcome the current postcode lottery" accessing essential services.
Sue Baker, from the Time to Change charity, which campaigns to end the stigma around mental health, said: "I know money is tight across the NHS, but there should not be any level of discrimination where one health issue is not as equally funded as other areas."
Writing on Twitter, former boxer Frank Bruno, who has bipolar disorder, said he was "glad mental health is making news this morning for the correct reasons".
Labour welcomed the announcement but accused Mr Clegg allowing mental health services to "fall into crisis" through budget cuts.
Shadow health secretary Andy Burnham said: "For over four years Nick Clegg has let mental health services slip backwards. Waiting times for talking therapies have got longer and people are struggling to get the support they need."
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