Liberal Democrat grassroot supporters are planning a revolt against the coalition’s controversial bedroom tax.

Activists have tabled a motion for next month’s party conference to demand a review of the policy, the Daily Mirror reported.

The motion reads: “The majority of rural and urban areas outside large cities such as London have insufficiently large, diverse and dynamic social housing markets to make moving into a smaller property locally a viable option.”

According to the Mirror, sources close to Lib Dem leader Nick Clegg believe the party face a good chance of being defeated by the motion.

Robert Brown, Lib Dem councillor for Rutherglen South Ward of South Lanarkshire Council, said: “We should send the clearest of messages that the policy is damaging and unfair.”

Lib Dem activist Julie Pörksen, who tabled the motion, said: “We decided to draft our own fair and workable party policy which frees up larger homes, respects people and reflects the reality of our limited social housing resources.”

Earlier this week, research by Newport East MP Jessica Morden suggested a link between the bedroom tax and a soar in rental arrears in South Wales.