Chris Huhne, the runner-up in the Liberal Democrat leadership contest, was yesterday put in charge of drawing up "green" policies for the party, including new taxes to curb pollution.

Sir Menzies Campbell, the new leader, stamped his authority on the party by promoting a younger generation of modernising MPs to key positions in his front-bench team. His shake-up will be seen as shifting the party towards the Right.

Mr Huhne, 51, an MP since May last year, put up a strong performance in the leadership contest after having been regarded as a rank outsider.

But despite coming second, he has not been given one of the top posts, such as home, foreign affairs or shadow chancellor. Mr Huhne, an economist, was previously one of the party's Treasury spokesmen.

At the weekend, Sir Menzies indicated that the environment would be at the forefront of Lib Dem policies, But drawing up "green taxes" on cheap flights, petrol and domestic fuel are likely to prove highly contoversial.

Michael Moore is promoted from defence to foreign affairs, and Julia Goldsworthy, at 28 the youngest MP in England, will shadow the Chief Secretary to the Treasury.

Vince Cable remains Treasury spokesman and Steve Webb retains the health brief.

Nick Clegg, a key supporter of Sir Menzies in the leadership race and often tipped as a possible successor, is promoted to take charge of the home affairs brief.

Miss Goldsworthy, who won Falmouth and Camborne from Labour in the 2005 general election, was previously an economics adviser to the party from 2003 to 2004.

Despite her youth, the party said she had a long history of Lib Dem involvement.

Sir Menzies said the party had the "brightest political generation" within its ranks and they would be more than a match for the Government and the Conservatives and would challenge orthodoxy.

He added: "In a whole range of areas - the environment, civil liberties, Britain's place on the international stage and tackling poverty - only the Liberal Democrats can provide the fresh thinking we need."

Sir Menzies said the managerial politics of New Labour and the Conservatives meant there was a greater need than ever for a "value-based, principled and ambitious alternative. We are determined to provide exactly that".