The peer was the party's Northern Ireland spokesman throughout the 1990s and a close adviser to former leaders Sir Menzies Campbell, Paddy Ashdown and David Steel.

He was also a distinguished parliamentarian, having served as Chairman of the Lords Constitution Committee and been made a Privy Councillor in 2000.

A family spokesman said yesterday: "Lord Holme of Cheltenham died yesterday at his home in Lurgashall, West Sussex, after a long battle with cancer. He was 71.

"A funeral will be held in the village church and a memorial service will take place in London at a later date."

Lord Richard Holme – who leaves his wife Lady Holme, two sons, two daughters and numerous grandchildren – was chairman of the successful 1997 Lib Dem election campaign.

Alongside his political roles, he also pursued careers in business and academia.

Educated at Oxford and Harvard, he went on to hold directorships at mining group Rio Tinto and Penguin Books.

He acted as Chancellor of the University of Greenwich, and was a visiting professor at Thunderbird Business School in Arizona.

Lord Holme became chairman of TV watchdog the Broadcasting Standards Commission in September 1999, but resigned in October the following year amid tabloid newspaper revelations about his private life.

Yesterday senior Lib Dems paid tribute.

Lord Ashdown said: "Richard was a man of outstanding talent, who was liberal to the core of his being.

"He was widely respected and shaped the course of British politics as no other non-elected Liberal has achieved."

Party leader Nick Clegg, MP for Sheffield Hallam, said: "Richard Holme made a huge contribution to the party over a period of many decades. His wisdom, kindness and advice were a great source of support for every party leader during that time."