British Chancellor Gordon Brown vowed today to build on Britain's economic stability to improve schools and hospitals and sharpen its competitive edge if Labour wins a vote expected in May.
Polls show the Labour Party is on track to win a historic third term, but public disillusionment with the eight-year-old government and voter apathy may cut its majority and hinder Prime Minister Tony Blair's legislative plans.
Mr Brown and Mr Blair warned Labour's last conference before the expected poll that low turnout could cost them victory. The centre-left ruling party hopes to draw a line under the Iraq war, which angered many voters, and is campaigning on its economic track record and stewardship of public finances.
"In the face of global economic challenges we will never rest upon our progress but build upon it," Mr Brown told the party. "By making any necessary reforms, implementing the fresh incentives and new legislation required I want Labour ... to become the modern party of enterprise, flexibility and business."
Mr Brown, viewed by many experts as Mr Blair's most likely successor, boasts a track record of sustained growth and low unemployment and inflation, and said stability for the world's fourth largest economy was paramount. But in a nod to party modernisers he stressed the need for further reforms to eradicate child and pensioner poverty and improve schools and hospitals.
"To those who say no change without security I tell you straight there can be no security without change."
He said Britain must respond to the competitive challenge from expanding manufacturing industries in Asia and vowed to work towards removing trade barriers to poor nations, while he reiterated a commitment to boost aid spending.
The opposition Conservatives accuse Labour of letting borrowing balloon and say taxes will rise if Labour wins. "He completely failed to say which taxes he would put up to fill the black hole in his spending plans," said a spokesman.
Mr Brown has said he will make a tax pledge after delivering this year's budget, expected in mid-March, and Mr Blair last week ruled out a rise in the top rate of income tax.
Mr Brown attacked the Conservatives' economic record and said their pledge to lower tax by slashing government bureaucracy would jeopardise stability. "This will be the central dividing line at the election between a Conservative Party ... planning deep cuts in our services and a Labour government ... which will reform and renew our hospitals, schools and public services," he said.