Scottish Labour conference: Eddie Barnes: 'Labour will be buoyed by Gray's performance, his best moment as leader'

He announced one new policy every five minutes in his speech to activists in Oban and - having done so - decided he could risk taking on Alex Salmond over the issue of his own personal image problem. "He called me the invisible man. But Scotland sees right through you Alex Salmond," he declared.

Prior to Gray's speech, Labour delegates were fretting about whether their man would flunk his chance in the spotlight. He buried that allegation yesterday, unveiling a radical overhaul of Scottish public sector landscape which, if enacted, would bring about huge change to the way the country is run. But, in doing so, has he given his enemies something to aim at?

The SNP will be sure to point out the price tag attached to Labour's shiny new policies. The Labour leader did not lay out how he plans to trim the public sector bill next year - that will have to wait until later next month. And Labour's reform to the council tax was also missing.

But overall, Labour will be buoyed by Gray's performance which was, without doubt, his best moment so far as leader. Cleverly, he attempted to subvert the SNP's attacks that he lacks leadership and presence. Unveiling his bold public sector reforms, he taunted Salmond: "Why so timid, Alex?" And while an Iain Gray speech is never going to be Live at the Apollo (his practised smiles during applause bore a remarkable resemblance to Gordon Brown's awkward misplaced grins), he offered a personal narrative that will appeal to left-of-centre voters, many of whom have still to listen to him.

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Gray asked the question in his speech: where stands Scottish Labour? As it breaks off today, where indeed? Certainly, in better spirits than it was the last time it came here ahead of the 2007 Scottish election.

Gray has the advantage of being a lucky leader. For most of the past ten years, in power in both London and Edinburgh, and with Scots in charge of both, a series of turf wars have punctured the Scottish Labour leader's position. But with North London Ed Miliband and East Lothian Iain Gray now in post, and with neither of them running anything, that natural tension is no longer prevalent.

Both men, they say, are "post-devolution" politicians who accept their territories. Furthermore, the party is very confident in the ground war it is operating.

Having heard the party's "doorstep" election strategy on Friday, one SNP-linked figure declared afterwards that Labour was going to walk this election. This is perhaps an over-statement: it is widely expected that, as in 2007, the SNP will be able to outspend Labour, particularly if its wealthy donors stump up once again.But Labour's John Smith House, its Glasgow HQ, has been transformed since 2007 when Labour admits it was blown off the park by the SNP. "It's the best vote-getting machine in Scotland," claimed one senior figure in the Oban bars.

But the bigger picture is not in Scotland, but in Westminster. George Osborne's public sector cuts is the Alpha and Omega of politics at present, devolved or otherwise. In Scotland, the battle between Labour and the SNP is for who can be the best bulwark.

One Labour MSP noted yesterday how, almost without doing anything, she was finding support increasing simply because of Labour's natural position as the repository for anti-Tory sentiment. Combine that with evidence that Lib Dem votes are leaking to Labour and the party's confidence grows. Salmond will be making sure that doesn't last for long.

The polls say Labour. Gray has had a good conference. The SNP has it all to do.