In a new era of three party politics the Liberal Democrats are increasingly in touch with the mood of the British people, Charles Kennedy has said.

Delivering his keynote final address to the party's annual conference on Thursday, Kennedy urged the public to back his party in order to get "more liberal democracy".

Attacking the prime minister's handling of the Iraq war, the Lib Dem leader said his party was now "trouncing" Labour in large parts of the country.

And he dismissed Michael Howard's Conservatives as the "third party" which "belongs to the past".

"We're working for the future. We are moving from a party of protest to a party of power," he told the grassroots audience.

His speech began with words of support for Kenneth Bigley, the British hostage held by Islamic terrorists in Iraq.

Kennedy said the "torture" being experienced by the Bigley family would be "incomprehensible".

"They are at the forefront of our thoughts and our prayers," he added.

Party officials said the kidnapping had "cast a shadow" over the conference, and plans to drop 2000 balloons at the end of the event were shelved as a result.

Protest or power

Kennedy said his party's recent successes were not just because of protest votes over the Iraq war.

"We are being seen more and more as a party which does win elections, which does exercise responsible representation, which has become increasingly comfortable with the duties and the disciplines of power," he said.

And his party's approach was in tune with the "solution-based politics" that appealed to much of the public.

"There is a shift in the way people view politics, one that transcends any single issue," he said.

"Iraq has been part of this but it is by no means the whole story...

"People see that the Labour and Conservative agendas are converging, where as ours is about having the freedom to make the most of our lives."

Lib Dem vision

Kennedy devoted much of his speech to spelling out his belief that the Liberal Democrats could now be trusted with power.

He said the Lib Dems should be excited at the prospect of "three party British politics".

There had been big gains across the country in the local elections, and big victories in the Brent East and Leicester South by-elections.

The party was bringing "a breath of fresh air" to politics and had proved it can "make the political weather".

In Scotland and Wales the party had made a difference, Kennedy argued.

And it would stand by its pro-European policies and not "pander to the lowest common denominator over asylum and immigration".

Practical policies

The keynote address also highlighted the policies that the party hopes will take it further down the road to power.

Some 10,000 more bobbies on the beat were promised as part of the fight against "drug dealers, muggers and yobs".

For pensioners there would be free long-term care, higher state pensions and the scrapping of the council tax.

More doctors and nurses and greater protection for the environment would also result from the party's policies, Kennedy pledged.

The plans were "based on social fairness" rather than "false choices designed to distract".

And tax and spending policies were described as "watertight".

"We want to tax and spend more wisely," Kennedy said.

"We don't want the politics of economic envy. But we do want the politics of social equity."

Iraq criticism

The Lib Dem leader also launched another broadside at Tony Blair's handling of the Iraq war.

Instead of "shock and awe" there had been "shock and then steadily increasing horror", he said.

"There's a sullen and increasingly angry mood on the issue, and understandably so."

And the prime minister had failed to explain whether he had made a secret deal with President Bush to back the war.

If Blair fails to explain himself the public should deliver "the ultimate verdict" at the next general election.

The Iraq war had also exposed failings in the parliamentary process, Kennedy added.

"This country is still crying out for an effective political system that responds to them and listens to the people," he said.

"Never again must this country be led into war on the basis of questionable intelligence."

Tories attacked

There was also a stinging attack on the Conservatives, with Kennedy saying they were failing to mount a significant challenge in the Hartlepool by-election.

"And it's a simple statement of fact that the Conservatives are now out of the race in most of urban Britain," he added.

"They hark back to a Britain that is no more. They're out of touch with the Britain of today."

Kennedy added that the Tories "belong to the past" while the Lib Dems are "working for the future".

"We are moving from a party of protest to a party of power," he said.

"Three party politics is here, and here to stay."