The next few days will be vital for the future direction of the Liberal Democrats, according to its party leader.

As delegates head to Brighton, Charles Kennedy has warned that this week will be "particularly important" in shaping the policies on which the party will fight the next general election.

There is little concern among senior party figures that the conference will be disrupted by the emergency recall of Parliament to debate the growing crisis in Iraq on Tuesday.

Kennedy is in buoyant mood; the party's poll ratings have held from the 2001 election, which saw a record number of Liberal Democrat MPs elected, and there were also successes in this year's local government elections.

"The last year has been a successful one for the party and the decisions taken at this year's conference will provide us with the platform we need to continue our role as the effective opposition for the rest of this parliament and through the next general election," he told the House magazine.

He will tell delegates that the party is now a significant presence not only in Westminster and local government but in the regional assemblies that will go to the polls next May.

Kennedy sees these as "an important step up" as the public gets to see his party having power and influence.

The key policy changes will focus on education and most importantly in dropping the party's pledge to put a penny on income tax.

The party's MEP Chris Huhne was charged with leading the policy overhaul as Kennedy believes that Gordon Brown's NI increases are an income tax rise in another name. He also claims Labour has adopted other parts of the party's agenda so it is time to move the agenda forward.

And he believes the party can capitalise on disaffection with both Labour and the Conservatives.

"Today's Conservative Party is a policy-free zone. All we know of the Conservative position on a whole swathe of public policy areas is that they want to cut the investment that is finally going into these services after so many years of under-funding. And this is the party that is supposed to be the Official Opposition in Britain," said Kennedy.

"The prospects for the Liberal Democrats look good. We have had a successful year and are gearing up for the next set of challenges. With a government that has failed to live up to so many of its promises and a Conservative Party that has ceased to function as a serious opposition and has turned infighting into an art form, the need for a strong Liberal Democrat voice is greater than ever. I am determined that it will be heard."