The Liberal Democrats’ conference this week kicks off one of the liveliest party conference seasons in years, not least of which is the election of a new leader at Labour’s event on Saturday and David Cameron’s first as prime minister. Robert Hill reports

Every autumn the party conference season brings its share of political thrills and spills. This year looks like being no exception.

The Liberal Democrats’ meeting in Liverpool this week was always predicted to have the rockiest ride. Their poll rating has plummeted since they entered the coalition, eight councillors have resigned in recent weeks and policy tensions are plain for all to see. At the heart of the party’s anguish is chancellor George Osborne’s June budget, especially as contrary to assurances provided by party leader, Nick Clegg, the Institute for Fiscal Studies has reported that the overall impact on the poorest in society is regressive rather than progressive.

There are also other substantial policy flashpoints. Many Lib Dems are unhappy about Michael Gove’s plans for free schools and new academies – which they see as undermining local communities and democratic accountability.

Andrew Lansley’ health proposals bear little resemblance to what was in the coalition agreement. Funding for universities and tuition fees is another sensitive area with big doubts over the feasibility of a graduate tax as proposed by Vince Cable, the business secretary. Elected police commissioners and, of course, the spending cuts are also hugely contentious.

Most of the Lib Dem faithful may swallow the painful medicine if they can achieve their long-sought goal of electoral reform. However, many of them see the proposed alternative vote as a poor second best to full proportional representation. If the planned referendum next May is lost (as it may well be) their angst about being part of the coalition could move from acute to crisis point.

Nick Clegg’s lack of political savvy is one of the Lib Dems’ main problems. Instead of cosying up to David Cameron all the time he would be better placed keeping some distance in the relationship – at least in public.

On all the big issues it looks as though the Lib Dems are rolled over by the Conservatives. Whatever influence the junior coalition partner is having, Nick Clegg would be better advised to be seen arguing for it openly rather than changes to Tory proposals all being made behind closed doors.

But the Lib Dems are not the only ones with problems. On the Saturday of its conference in Manchester, the Labour Party will announce its new leader. The race between the two Milibands is impossible to call – such is the unpredictability of the second preference voting system.

Whoever is elected faces the challenge of bringing the party together, of convincing the public that Labour has a credible fiscal and economic strategy, defining its stance on public service reform and sorting out the party’s finances – without ending up in hock to the unions. The party will seek to move on decisively from the Blair/Brown years but in the fringe meetings and on the conference floor it will inevitably hold an inquest into its electoral defeat in May. Labour has to decide whether it is going to consolidate in its heartlands with an emphasis on fairness and social justice, or whether it is going to combine this historic commitment with policies that recognise aspiration and promote social mobility.

David Cameron looks as though he could have the easiest conference ride in Birmingham. His personal popularity is high and the Tories are setting a bold and at times frenetic policy pace. However, they too will face sharp debates. Why did the party not achieve an outright election victory in the first place? Is the economic strategy right or will there be a double dip recession?

The ‘One-Nation’ strand of the Tory party will fret about the political impact of the spending cuts. Can the Big Society be turned into something real or will people conclude that the cuts mean we are back to the same old ‘nasty’ Tories in disguise? The right wing of the party will worry that not enough is being delivered or promised by way of tax cuts and will voice doubts about whether the Government, under Lib Dem pressure, is going soft on law, order and terrorism.

Robert Hill is an independent analyst on public services and public policy and former adviser at Number 10