The Scottish Secretary Dr John Reid has warned Labour supporters that the party needs to continue its modernisation programme.

He explained that if the party wished to hold onto power it would have to make further changes.

Dr Reid outlined his vision for the future before a gathering of the Fabian Society, one of Labour's oldest and foremost think tanks.

In a speech, entitled "The Third Way and the New Political Ideas", he said the party must embrace change and be "revisionist in principle".

Dr Reid has been chosen to spearhead Labour's modernisation programme in Scotland.

'Change for the better'

He told the debating group that Labour's policy on the economy was an area which had changed for the better.

Dr Reid sought to highlight work being done in the public and private sectors and in welfare reform.

He also sought to develop the theme of unity outlined in previous speeches where he has stated that Labour must continue to demonstrate electoral appeal to those in ''boiler suits as well as those in Armani suits".

Dr Reid then went on to attack his political opponents.

He accused the Scottish National Party of being rooted in the politics of what he called "grudge and grievance", and criticised Conservative Leader William Hague, for what he said were his ''extremist and dogmatic'' views on welfare and taxation.