Nick Clegg has said it his intention to "break the two-party system" in British politics.

As he began his first full year as Liberal Democrat leader, Clegg vowed he would not shy away from taking a firm - and potentially unpopular - stance on sensitive issues.

Clegg has already caused consternation in some areas by declaring he does not believe in God, and insists he would always be prepared to give "clear and candid" responses to legitimate questions.

"I think the Liberal Democrats have got a record of being credible and honest on issues which are unpopular and difficult for the other parties to deal with, like tax, like immigration, like international affairs, like civil liberties, like how we are governed, like the environment... the Iraq war," Clegg told Sky News' Sunday Live programme.

"On all of the big issues which have dominated British politics in the last few years, we have been well ahead of the pack or we have been prepared to say things that the other parties haven't dared to say.

"I think you will see more of that in the months to come."

Clegg acknowledged he faced "no small task" in overturning poll ratings which have seen them languishing around the 15 per cent mark for much of last year and said that 2008 would be a "crucial year" for restoring Lib Dem fortunes.

"We are on the way to reinventing politics. The days of two-party politics are numbered," he added.

"I have set a very clear long-term objective which is that I want to see us over the next two elections break the two-party system for good, establish three-party politics for good."