Vince Cable has accused right-wing Conservatives of waging "idealogical jihad" on public spending and warned that the Liberal Democrats would block efforts to implement some cuts.
Speaking at a fringe event on the eve of the party's spring conference in Brighton, the Business Secretary also warned that Tory efforts to reduce immigration were "causing a great deal of harm to the economy".
He said: "What we have to make absolutely clear is that there is a difference between managing public spending, controlling public spending in that context - having that financial discipline - and the kind of thing that a lot of right-wing Conservatives are wishing for, which is a kind of British Tea Party.
"A kind of ideological jihad against public spending and public services."
Kicking-off the gathering on Friday, party leader Nick Clegg denied the Lib Dems were in crisis in the wake of sexual harassment allegations and the conviction of ex-Cabinet minister Chris Huhne.
Deputy PM Nick Clegg admitted the party had 'let people down' But the Deputy Prime Minister did admit the party had recently "let people down" and needed to take a "long, hard look in the mirror".
He said: "No doubt you will be aware of the recent allegations that have been made about sexual harassment in our party.
"When concerns were brought to the attention of members of my team we acted to address them.
"But this should not have just been the responsibility of a few individuals acting with the best of intentions.
"It must be the responsibility of the party as a whole to make sure we have the processes and support structures in place now and in the future.
Disgraced MP Chris Huhne was praised for his constituency record "We didn't, and as a result we let people down. Liberal Democrats, that is not acceptable to me."
Delegates gave disgraced former Energy and Climate Change Secretary Huhne a round of applause after Baroness Shirley Williams praised his record as a constituency MP.
She described as "domestic tragedy" the situation of Huhne and Vicky Pryce, his ex-wife, who was found guilty of perverting the course of justice after she took speeding points on his behalf.
"We can only say of them that this is a tragedy that sometimes overcomes people; not least those in public life," she told the conference.
The party is bracing itself for showdowns with activists next week over so-called secret courts legislation and the coalition's economic strategy.
Labour has also challenged Mr Clegg to break coalition ranks by supporting the introduction of a mansion tax - long favoured by Lib Dems - in a Commons vote next week.
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