Liberal Democrat troops cheered by Kennedy pledges

The Liberal Democrat leader, Mr Charles Kennedy, sent his troops home from their Harrogate conference last night cheered by a…

The Liberal Democrat leader, Mr Charles Kennedy, sent his troops home from their Harrogate conference last night cheered by a promise to keep the party's principles intact and firmly ahead of the political game.

As expected, Mr Kennedy used his first keynote speech as leader to warn the party against turning into "a left-wing cul-de-sac". While seeking to carve a "distinctive" Liberal Democrat agenda - and warning Labour not to enter a tax-cutting competition with the Conservatives - Mr Kennedy stopped short of committing his party to enter the next election pledged to increased taxation.

But amid continuing speculation that the Chancellor's so-called "war chest" might free the Liberal Democrats of their commitment to raise a penny in tax for extra education spending, Mr Kennedy again raised the spectre of his party voting against Mr Gordon Brown's next budget.

Having lashed the Tories as "an irresponsible disgrace" over the Northern Ireland peace process, and as a party without a future, Mr Kennedy turned his fire on Labour "morality" in social policy and "timidity" over Europe.

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"Any government that calls itself progressive but refuses to fund health and education properly should be ashamed of itself," he said. "They should be even more ashamed when they start using the rhetoric of the moral crusade."

He continued: "There's more to morality than curfews. There's more to morality than attacks on how people choose to bring up their children. There's a lot more to morality than some of the most illiberal asylum and immigration laws this country has ever seen."

And seeking to establish his own liberal credo, Mr Kennedy stressed his personal commitment to racial and sexual equality. "It's absurd, isn't it, that we no longer prosecute spies, but patriotic men and women, because of their sexuality, can't serve their country in uniform."

Lamenting the British government's continued attention to focus groups and a failure to lead, Mr Kennedy said: "Nowhere is this more true than on the issue of Europe. I am unashamed on this issue . . . Europe is good for Britain. It's patriotic to be pro-European."

Looking ahead to the eventual referendum on the euro, Mr Kennedy predicted a battle between "a perverse coalition of yesterday's men and women" and a pro-euro campaign drawn from "mainstream and respected figures from all parties".

Turning to Mr Blair, he demanded: "What is there to be afraid of? Lead now. Lead now and there can be a decisive majority for British entry. Put if off and the result is far from clear."