Kennedy takes over as leader of the Lib Dems

The MP FOR Skye, Ross and Inverness, Mr Charles Kennedy, has replaced Paddy Ashdown as leader of the Liberal Democrats

The MP FOR Skye, Ross and Inverness, Mr Charles Kennedy, has replaced Paddy Ashdown as leader of the Liberal Democrats. He survived a strong challenge from London MP Mr Simon Hughes - eventually winning yesterday by 57 per cent to 43 per cent - and is now expected to order a comprehensive overhaul of the party.

The outgoing leader, Mr Paddy Ashdown, said: "I have full confidence in Charles Kennedy, who has all of the abilities necessary to lead the party and to take it from strength to strength."

He leaves his successor a difficult legacy, particularly as relations between Labour and the Liberal Democrats are seen to be in crisis. Mr Kennedy is expected to seek a more distinct role for his party, and to emphasise that support for the government is neither unequivocal nor unconditional.

"Our campaigning on the government's failure isn't about to let up," said the new leader on receiving the news. "At the next election there will be a strong independent alternative to Labour."

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However, Downing Street moved quickly to quell talk of conflict. "The Prime Minister has always felt and continues to believe that the co-operation between Labour and the Liberal Democrats has worked to the benefit of both parties," a spokesman said.

At the announcement of the results, the 39-year-old former journalist outlined his vision of a pro-European party which would campaign for social justice, better public services and the environment.

He said that the collapse of the Conservative Party represented a major opportunity for the Lib Dems and that the failings of Labour had provoked disillusionment.

"We offer a different approach," Mr Kennedy asserted, "and that difference is now more important than ever . . . Too many people are simply tired of politics. We have to reconnect with the British people."

Mr Kennedy plans to effect major changes within the party. He will move MPs into more campaigning roles, discarding many of the current spokesperson positions. He is not expected to call a reshuffle immediately, but one is likely to come after the party conference in September, and leadership challenger Mr Hughes is expected to receive a senior position, as is Mr Kennedy's campaign manager, Mr Matthew Taylor.

In contrast with previous leadership battles in British politics, the Lib Dem race was decided by the proportional representation voting system. It meant that winning second preferences became important for candidates. On that basis many thought Mr Hughes might squeeze ahead on votes from radical candidates.