Analysis By Nick Assinder Political correspondent, BBC News website

It may have looked touch and go at one point, but Sir Menzies Campbell has won the first major test of his leadership and probably removed some of the doubts over his future.

Sir Menzies won vote on tax plans

He would never have admitted it, but defeat over his tax policy would have represented a potentially lethal setback and revived all the concerns over his leadership.

Many in the party would have started considering the possibility of removing him before the next election in favour of a younger, more dynamic leader.

As it is, he is free and clear, at least for the time being.

In a highly symbolic move, the victory marked a clear dividing line between the past, Charles Kennedy era and the new Ming dynasty.

His next task is to unite the party behind the new policy and use his end-of-conference speech to look to the future under his new agenda.

First hurdle

And, whatever the arguments on both sides, it is recognised to be a radical agenda with a tax policy which, for the first time from any political party, will look to taxing pollution rather than income.

It may even see the big two parties now looking at adopting a similar approach in the race to prove which is the greenest of them all.

Kennedy: Resigned as leader in January

It will prove a particular challenge to Tory leader David Cameron who has put huge effort into winning green credentials for his party.

But, for the moment, Sir Menzies will be celebrating his victory and undoubtedly breathing a huge sigh of relief that he has sailed over the first conference hurdle.

The appearance of his predecessor Charles Kennedy, who is still much admired in the party, and his own big speech were always going to be testing occasions for him.

But, with this vote safely under his belt, he will feel more confident that the party has underpinned his leadership and authority.

That will make it difficult for any of his internal opponents to continue sniping at his leadership or whispering about whether he is the man to take them into the next general election.

Those concerns may return, of course, but this was a good result for Sir Menzies and gives him a powerful basis for his conference speech on Thursday.

None the less, with concerns about his personal style still an issue in the party, that will need to be a good one.

Nick.Assinder-INTERNET@bbc.co.uk