SIR MENZIES CAMPBELL used his first conference speech as party leader to unleash a highly personal attack on David Cameron, successfully drawing a line under the turmoil that has engulfed the Liberal Democrats over the past year.

The Liberal Democrat leader branded the Tory party a “substance-free zone”, called on his Conservative counterpart to apologise for supporting the Iraq war and branded his party a glorified advertising agency.

Sir Menzies told delegates in Brighton that the country was crying out for a political party with firm principles, but gave warning that the Liberal Democrats needed to grow up and “act as a party of government” if they wanted to advance in Parliament.

“My objective is nothing less than to complete the transformation of the Liberal Democrats from a party of opposition to a party of power,” he told the packed conference hall.

The speech delighted activists, who greeted him with two standing ovations. In response Sir Menzies threw his arms in the air repeatedly as he acknowledged the applause.

During this week’s conference the party has positioned itself on the Centre Left of British politics, and the speech indicated Sir Menzies’ instinctive hostility to the Tory leader.

This suggests that the two parties may find it difficult to work together in the event of a hung Parliament. Sir Menzies put the party’s new tax policies at the heart of the speech, pledging a fair taxation system and making a promise that he would not seek any extra money from voters.

The package, which includes the abolition of the 10p starting rate, a cut in the basic rate from 22p to 20p and raising the top-rate threshold to £50,000, was approved overwhelmingly by delegates on Tuesday.

Sir Menzies insisted that the message was very simple: “Income tax cuts for hard-working people; the polluter paying the price; taxing wealth, not work.

“Taxation is at the heart of good government. And if a political party cannot or will not tell you how it will tax, then it does not deserve a single vote,” he said.

Earlier in the week the leadership successfully overcame a potentially highly damaging revolt over dropping the 50p rate on high-earners, which was seen by some as a move to the right.

However, the Liberal Democrat leader is understood to be lining up Steve Webb, a key leftwinger, for a senior role drawing up the party’s next election manifesto.

Mr Webb, the party’s health spokesman, played an important part in gaining delegates’ support for Sir Menzies’ tax plans. He said yesterday that no decision had been announced.

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