If the Lib Dem conference is a mark of things to come, this is set to prove one of the most downbeat conference seasons in years.

The overall tone was dictated by the two big beasts of the Lib Dem jungle, Vince Cable and Nick Clegg. The Business Secretary Cable has enjoyed something of a political rehabilitation in recent months and could have been forgiven for seeking to cement his status as the conference darling. But his speech was that of a kindly doctor delivering to the patient – the British economy – the very bad news that only a prolonged period of bloodletting would cure the disease. While he did employ the word ‘stimulus’ at times during the week, he was careful to define it in terms that remained within the spirit – as well as the letter – of the deficit plan.

The Deputy Prime Minister also stuck steadfastly to the script that tough times called for tough measures. He peppered his speech with the refrain “it’s not easy, but its right” and made frequent references to those titans of stern Victorian liberalism, Gladstone and John Stuart Mill. Like a non-conformist preacher, Clegg (quoting Mill) warned the party faithful that “the only struggles worth having are the uphill ones”.

Unlike last year, when every minister had a few sweeties to hand out to the crowd, there was a virtual absence of anything new. Minister after minister took to the conference stage to defend strongly their actions and to throw occasional barbs at the other parties but not to offer fresh initiatives. Even Clegg had just one new commitment to hand – summer schools for vulnerable youths – and that was costed at just £50 million.

Yet the party’s activists took all the gloom in their stride. While the heady early days of government have long since evaporated, so has the rancour which coloured the weeks leading up to the disastrous AV referendum and local elections in May. The party’s discipline has actually strengthened in recent months. The Lib Dems have played their part in ensuring that those many Coalition naysayers who did not believe it would even last a year were wrong. Given the mood in Birmingham, there is little reason to believe that resolve is likely to disappear any time soon.

Just as importantly, the Lib Dem leadership appears finally to be settling on a longer term political strategy. In part, the party is doing more ‘differentiation’ with its Coalition partners. There were more attacks than last year but less than many expected. The political knockabout was largely targeted at the vaguely defined Conservative right not the key ministers (and will undoubtedly be reciprocated when the Conservatives meet in Manchester shortly). Clegg, meanwhile, focused his sights on Ed Miliband, the deputy prime minister contrasting his ability to take tough and unpopular decisions in the national interest with the Labour leader’s “backroom” experience.

Amid the general gloom the Lib Dems believe there is a glimmer of light. The post-AV referendum apocalypse that some commentators predicted has not taken place. While the party continues to bump along the bottom, it takes solace from the fact that Clegg while not liked is beginning to win grudging respect for his efforts in government. The same subtle change of tone can even be detected in the media used to dismissing the Lib Dems as ill-disciplined and irrelevant.

But as the Lib Dem leadership made abundantly clear the road to political recovery will be long and hard. The question remains open that if the polls do not start turning in 2012 whether the leadership will get such a smooth ride this time next year.