Leading article: A party learns to respect, if not love, its leader

This was a good week for the Liberal Democrats; a better week, we venture to suggest, than either the leaders or delegates probably expected. It was a good week, first, because two potential disasters did not happen. Contrary to widely canvassed fears, the party leadership won the vote on its revised tax package, and with a healthier majority than even optimists had anticipated.

The Treasury spokesman, Vince Cable, did a convincing job of explaining that the new proposals would be more effective in redistributing wealth than the 50 per cent income tax on the highest earners on which the party had campaigned in the last election. The new package lacks the headline simplicity of the 50 per cent, and may be harder to present to the voters. But pledges to remove those on minimum wage from income tax liability altogether, and the emphasis on "green" taxes have an appeal, and an originality, of their own.

The other disaster that did not happen was a defiant and swash-buckling speech from the former leader, Charles Kennedy, that would have upstaged Sir Menzies Campbell, perhaps fatally. Mr Kennedy might not have provided a photo-op handshake with his successor, but his speech was dignified and supportive. By the end, Mr Kennedy occupied a new place in the party, but it was not as a challenger to Sir Menzies.

Which leads to the second respect in which this was a good week for the Liberal Democrats. The stature of Sir Menzies as party leader seemed to be enhanced a little more every day. In yesterday's closing speech he emerged very definitely as the leader, a stature his lacklustre parliamentary performances had denied him in the months that followed his election.

There were false notes: that photograph with the young Liberal Democrat women, which only emphasised his age, and the intrusion of certain "modern" set-pieces, such as triumphalist body language and the spot-lit walk to the platform, with which Sir Menzies - to his credit - seemed uncomfortable. Some of the attempted humour early in his speech seemed embarrassingly weak. Once into solid policy, however, he hit his stride, and was rewarded by an audience that was as appreciative as it was, doubtless, relieved.

Policy is the third reason why this was such a good week for the Liberal Democrats. From Vince Cable on the economy, through Chris Huhne on the environment and Nick Clegg on home affairs, to Sir Menzies yesterday, this was a conference in which policy was central. But it also showed how the Liberal Democrats can still set themselves apart. In spite of the raids made by David Cameron's Conservatives, in particular, on some of its long-standing positions, the party managed to carve out for itself some distinctive Liberal Democrat space.

Its "fairer, simpler, greener" tax package could provide inspiration for post-Blair Labour, as well as for Mr Cameron's Conservatives. Mr Clegg's eloquent defence of civil liberties, reinforced by Sir Menzies yesterday, showed that at least one party - thank goodness - refuses to confront the terrorist threat with new layers of repressive legislation. The 90-day detention, ID cards and the rest of this shameful edifice were roundly rejected. And Sir Menzies was in his element on security and foreign affairs. His salvo against Mr Cameron for his pro-war vote was especially lethal.

We glimpsed yesterday, for the first time in many months, the third party with a substantial leader at its helm. Whether Sir Menzies will be able to honour his pledge "to transform the Liberal Democrats from a party of opposition into a party of government" is still a question. But it is no longer quite as inconceivable as it was when the week began.