The Liberal Democrats could make "significant gains" at the next general election, according to their chief strategist.

Speaking to GMTV on Sunday, Lord Rennard predicted that Charles Kennedy's troops could take seats from both Labour and the Conservatives.

The Iraq war had damaged trust in the government, he said.

And the Tories under Michael Howard were doing less well than under previous leaders Iain Duncan Smith and William Hague.

But the electoral system could yet produce results that would re-open the debate over proportional representation, he said.

"While not forecasting it, it's not at all impossible that the Liberal Democrats will overtake the Conservatives in sharing the vote," said Lord Rennard.

"We could well overtake them in sharing the vote but suppose they get more seats than we do, I think people would think that was perverse and not right."

The Lib Dem campaigns director also said his party was performing better under Kennedy's leadership.

Policies on long term care for the elderly and replacing university top-up fees would give them a distinctive agenda, he added.