Jonathan Reed: Confident Clegg helps Lib Dems savour the new flavour of power

Were it not for the inconvenience of having to share power with the Conservatives – still the foe to many of those with yellow blood coursing through their veins – Nick Clegg would have taken to the stage yesterday afternoon a conquering hero lapping up unadulterated applause.

Instead, he arrived in a conference hall where hours earlier his party had vowed to boycott one of the flagship policies of their coalition partners, the setting up of "free schools".

And still ringing in his ear were the criticisms and concerns aired by delegates the day before who questioned Government claims to be acting with fairness and moaned that the Lib Dems were being blamed for cuts while the Tories take credit for more popular policies. No wonder the video designed to get the delegates fired up before Mr Clegg's arrival fell slightly flat, given it featured his backslapping appearance on the Number Ten doorstep with David Cameron after the coalition was formed and a series of clips of him in House of Commons action surrounded by Tory frontbenchers.

But even his critics within the party knew that once he had taken to the stage this was not the occasion to be causing trouble.

In a typically polished performance, Mr Clegg's overarching message was one of patience. Hang on for the ride – it may not be nice at times, but it is better to be in government doing things than shouting from the outside.

For those finding it particularly hard to stomach, he even started the countdown to the next general election – only 1,690 days to go, apparently – when, by declaring this as "the right Government for right now", he assured them it would all be over.

In the spirit of coalition co-operation, the speech was seen in advance by the Prime Minister, but both parties are politically-smart enough to realise that playing to their own galleries at conference time will play a vital role in keeping the coalition together.

That was doubly important for Mr Clegg yesterday, knowing that convincing his party – some of whom have never warmed to a man many considered too far to the right – it is not losing its identity is vital to keeping doubters on board. The party "will never lose our soul", he pleaded.

"I still think the war in Iraq was illegal," he said to one of the biggest cheers of the afternoon. "The difference is lawyers now get anxious when I mention it," a reference to the consternation caused among senior Government officials when he made the declaration while standing in for David Cameron at the Despatch Box. Subtly, he identified areas where the Lib Dems are different from the Tories in a bid to reassure the dismayed. There was mention of political reform – where the referendum on changing the voting system will pit the partners directly against each other – and talk of Lib Dem values.

He took delegates back to the four key principles the party campaigned on at the general election, and gave plausible examples of how they were putting them into practice in government.

There was a list of Lib Dem "achievements" so far – on raising the income tax threshold, changing education funding, the promise of a Freedom Bill. And there was a healthy dose of banker bashing, a fine example of playing to the crowd if ever there was one. There was more fierce condemnation of Labour's record in there as well, vital in getting to the hearts of those in his party who would feel more comfortable in a Left-wing alliance.

But the biggest cheer of the afternoon came for mention of the scrapping of ID cards – ironically, something their coalition partners were committed to as well.

And above all, this was an attempt to make the case for the coalition – the case for cuts, for spending money on services rather than debt interest, but also the case for making a positive difference to Britain as a country.

In structure, it may have been clunky in parts but as a speech he will be able to look back and reflect on a job done as he prepares to head to New York on Government duty at a United Nations conference.

His early departure raises an interesting dynamic. Normally, the final act of conference before delegates depart, activists now have another two days in Liverpool to chew over and digest the contents of this speech.

What of the scant mention of the environment and green causes they hold so close to their heart? Why such little mention of the conflict in Afghanistan, considered so important last year that he controversially started his whole speech by dealing with the war?

For now, there may be a little muttering. Over the coming months there will certainly be more. Four months in, most of those within the party who have mixed feelings will "stick with us" as Mr Clegg pleaded yesterday.

But with the reality of cuts about to be exposed, the party liable to voter anger in local elections next spring, a tricky referendum on voting reform to win and Labour hoping to unite behind a new leader, wise Lib Dems know next year may be a more difficult conference altogether. By then we may be discovering whether Mr Clegg can truly convince the sceptics that the price of power is worth it.