Kennedy's manifesto blunder

A blunder over a flagship policy overshadowed the Liberal Democrats' manifesto launch today.

An exhausted Charles Kennedy became confused over how his party would fund a key pledge to scrap council tax. He appeared to forget the policy would lead to a £2.4 billion-a-year fall in local taxes raised. The party plans to make up the shortfall with a new top income tax rate.

Today party officials admitted that Mr Kennedy had "made a mistake" - blaming the error on fatigue following the birth of his first son on Monday.

He had just two days off with his wife Sarah and new baby Donald before returning to the campaign today. At the launch in London Mr Kennedy admitted he "could have done with more" sleep.

But questions were being raised about why other senior Liberal Democrats at the launch did not correct his mistake.

The manifesto highlights key pledges: to introduce free personal care for the elderly; abolish university tuition fees; replace

council tax with a new local income tax. Mr Kennedy made the error when he was asked about how much money the new local income tax would raise.

He said: "The global sum that is raised under our local tax is no bigger than the total sum that is being raised by council tax ... but no less." In fact, the party estimates the new policy will be subsidised by a 50p rate of income tax for those who earn more than £100,000. Speaking about Mr Kennedy's comment, the Liberal Democrats' treasury adviser Will De Peyer said: "I think he is extremely tired at the moment and made a mistake." It is particularly embarrassing because of the party's emphasis on costing all policies.

At the launch Mr Kennedy played what he hopes will prove the trump card by emphasising the party's opposition to the war in Iraq. The party hopes to win dozens of seats as the result of public anger over the conflict. However, a Mori/Evening Standard poll today shows Iraq has tumbled down the list of issues that voters consider important.