The Independent newspaper, which is 46.5 per cent owned by Independent Newspapers, plans a major re-launch today as it seeks to recover ground lost during a fierce circulation war among the UK's top newspapers. "The new Independent, which leads the way from tomorrow, is setting out to do what the In- dependent first did back in 1986: change the concept of a serious quality newspaper," said its editor, Mr Andrew Marr. "The newspaper will be upmarket, but easy to read and unstuffy," he added.

The re-launch will be backed by a £12 million advertising campaign on billboards, television and radio. Designed by the M&C Saatchi agency, the campaign's message - "It's changed. Have you?" - echoes the Independent's 1980s launch slogan - "It is. Are You?".

Circulation of the paper has dwindled in the 1990s in the face of fierce price cutting led by the Times, owned by Mr Rupert Murdoch's News International.

The Independent needed heavyweight financial support and is now co-owned by Mirror Group and Independent Newspapers Plc. But while losses have been cut since Mirror and Independent took control, the newspaper continues to rack up heavy losses. Both Mirror and Independent have stated that their shareholdings in the Independent are not for sale, and a recent approach by the Barclay brothers to buy the daily and its sister publication, the Independent on Sunday, was turned down.

Losses last year totalled £15 million, and in the first half of this year were £4 million at the operating level and over £5 million when interest paid to its main investors is taken into account.

The Independent's daily circulation has now stabilised at just under 260,000 - making it the smallest seller of the four quality dailies.