The Liberal Democrat leader has wasted little time in putting in place his party's post-election policy and policy-making review.

Welcoming new MPs to Westminster yesterday, Charles Kennedy gave a strong hint that he wants to change his stance on tax and remove decision-making from the party's annual conference, moves that could anger the party's left-wing.

A new tax commission will re-examine plans for a local income levy and a 50 pence top rate.

Treasury spokesman Vince Cable said policy needs to be "plausible" amid a tougher public spending climate.

Kennedy also promised a bigger fundraising effort to put the party on a more equal campaign footing with Labour and the Tories.