Spurred by recent advances in Large Language Models (LLMs), virtual assistants are poised to take a leap forward in terms of their dialogue capabilities. Yet a major bottleneck to achieving genuinely transformative task-oriented dialogue capabilities remains the scarcity of high quality data. Existing datasets, while impressive in scale, have limited domain coverage and contain few genuinely challenging conversational phenomena; those which are present are typically unlabelled, making it difficult to assess the strengths and weaknesses of models without time-consuming and costly human evaluation. Moreover, creating high quality dialogue data has until now required considerable human input, limiting both the scale of these datasets and the ability to rapidly bootstrap data for a new target domain. We aim to overcome these issues with LUCID, a modularised and highly automated LLM-driven data generation system that produces realistic, diverse and challenging dialogues. We use LUCID to generate a seed dataset of 4,277 conversations across 100 intents to demonstrate its capabilities, with a human review finding consistently high quality labels in the generated data.