The government has announced its mid-term review, where it takes stock of the progress made in implementing the Coalition agreement signed in May 2010.

Among the initiatives unveiled were pledges to support working families with childcare costs - potentially in the guise of a flat rate tax allowance worth up to £2,000, assistance with the burgeoning costs of caring for the elderly and home building plans with help for first time buyers and £10bn of debt guarantees.

In a joint press conference with his deputy, Nick Clegg, prime minister David Cameron, said: 'Some people thought our coalition wouldn't make it through our first Christmas, but this government is now well into its third year, because this coalition was not and is not some short-term arrangement.'

Additional reforms that the government vowed would be fleshed out before the Budget include measures to limit state powers and extend personal freedoms, consultation on attracting private investment into motorways and trunk roads.

'They also vowed to extend the controversial HS2 high-speed rail link from Birmingham to the North, as well as fulfil its promise to track down tax evaders and tax avoiders by raising an additional £2bn a year from people who are avoiding paying their fair share of tax.'

In the forward to The Coalition: together in the national interest review, the duo said: 'Two-and-a-half years ago, our parties came together in the national interest and formed a coalition at a time of real economic danger.

'The deficit was spiralling out of control, confidence was plummeting, and the world was looking to Britain with growing anxiety about our ability to service our debts.

'This government's most urgent job was to restore stability in our public finances and confidence in the British economy. In just two years we have cut the deficit by a quarter and have set out a credible path towards our goal to balance the current budget over the economic cycle.'

Labour MPs dubbed the exercise as little more than just 'another relaunch'.