Business Day at Lib Dem Conference 2026 was a cheery affair: surprisingly so, given the tension within the party over the direction of its national leadership.
Locally, 2026 was a strong year for the Lib Dems. Across the country, they returned 844 councillors – 155 more than they held prior to the election. Notably, the party won every seat in their heartland of Richmond, and a resurgence in Southwark and Lambeth sees them in coalition with the Greens.
On the national stage, however, the struggles of Sir Keir Starmer to hold the centre ground have naturally begotten the troubles of Lib Dem Leader Sir Ed Davey, who has been facing criticism for much of the past two years over the Lib Dems’ apparent stagnation in national polls whilst the vacuum at the centre of British politics has seldom been larger.
Whilst the Leader of the Party told Business Day attendees that Britain was ripe for the resurgence of the ‘radical centre’, this radical centre has yet to reveal itself in national polling numbers.
The Davey faithful loudly pointed out that he has picked up the embers of a party which won just 11 seats in 2019 and lost its leader, and delivered the Lib Dems’ most successful General Election result in history in 2024, and a strong Local Election performance in 2026. Today, there are over 3,300 Lib Dems in local councils across the country and 71 Members of Parliament.
One MP we spoke to told us that national ambiguity is a deliberate strategic choice by the Lib Dems, giving them the ultimate flexibility to campaign on local issues. Nevertheless, it has led to increasing disquiet among Lib Dem ranks, with the Leader of Devon County Julian Brazil warning that the Lib Dems ‘lack ambition’ and are ‘sleepwalking into irrelevance’.
While Sir Ed’s headline policy to reduce income tax – funded by Britain’s rejoining of the single market – played well with the press alongside other cost of living announcements, Business Day attendees were less impressed by the party’s handling of the elephant in the room on the tax and spend challenge facing the country.
Attendees felt the party was ignoring the realities of the UK’s ballooning spending deficit and the need to increase taxes, leaving doubts about whether the Lib Dems are truly ready for national government. For now, at least, it seems the Lib Dems will remain the party of localism, not a serious challenger to a slow Labour and Conservative resurgence.
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