Leading article: Better weather in Brighton

The Liberal Democrats have not had a great deal to cheer about this year. But at their conference yesterday they moved forward on two fronts, adopting credible economic proposals and cheering a dignified Charles Kennedy enthusiastically, but not to a degree that posed a threat to the new leader.

Most important, the pivotal debate on the economy - and its outcome - suggests that the party is settling down. By a wider margin than many expected, the conference voted in favour of a programme that places a radical emphasis on green taxes. The Liberal Democrats are not going to win the next general election, but at the least they can place pressure on the Labour and Conservative parties to follow suit with some specific policies. Too often the bigger parties claim an interest in the environment, but do not dare to risk alienating motorists and purchasers of cheap air tickets.

The new package of policies is at least as fair as the previous one that included a new top rate of tax on high earners. The party would have sent out the wrong signal if it had endorsed the new package and a top rate of tax. As the party's Environment spokesman, Chris Huhne, pointed out, there was a danger of the party becoming the "tax for the sake of it party".

The debate also did some credit to the Liberal Democrats. The two bigger parties are fearful of having candid arguments about tax. On the conference floor yesterday there was a rare example of a party exchanging ideas openly about thorny and politically sensitive issues.

Many questions remain. As some speakers argued convincingly, the Liberal Democrats' tax policies have been framed in a vacuum, disconnected from the party's spending policies. In the build-up to the election the party will have to ensure that the sums add up and that its spending plans do not exceed the cash it hopes to raise from the new tax policies. This will not be easy if the Liberal Democrats are also claiming that the objective of green taxes is to change behaviour rather than raise revenue.

Still, the party's leader, Sir Menzies Campbell, deserves praise for having the courage to put forward a radical package and winning the key vote. With a restrained speech from Mr Kennedy, without coded attacks or hints of a leadership comeback, the party will probably be able to leave behind its angst about the events at the start of the year.

The Liberal Democrats face an uncertain future as Labour prepares for a new leader and the Conservatives show some signs of a recovery. At least after yesterday's events in Brighton they will be better prepared for the challenges ahead.