Labour 'party of wealth creation'

Tony Blair and Gordon Brown are keen to focus on the economy

Tony Blair has branded Labour the "party of modern wealth creation" in a keynote speech about the economy.

The prime minister returned to Labour's theme of linking investment in education to maintaining a skilled workforce which can compete globally.

Countries which exploit the talents of individuals best have the best economies, Mr Blair says.

The Conservatives and Liberal Democrats both say that there is a black hole in Labour's economic financial plan.

But Mr Blair attacked the economic policies of both parties.

He dismissed the Conservatives' economic plans as "alchemy", including their pledge to abolish tuition fees which he said "may be good opportunism, but it is bad policy".

"It is a programme that is more alchemy than economics. It promises to cut tax, spend more, borrow less - all at once.

"It is a sign of the complete transformation of British politics: that we can claim to be the party of economy, and they are the threat."

The Conservatives have repeatedly set out how they intend to save money by greater efficiency and getting rid of unnecessary parts of government.

'Knowledge economy'

Mr Blair said the Lib Dems' proposal for a 50% tax rate for the wealthy was "wildly unrealistic" and could harm the economy.

The prime minister told an invited audience of business leaders at Canary Wharf that Britain needed to invest in education to remain as a top "knowledge economy".

He highlighted Labour's plans to boost school science in England, promising a £250m, three-year programme "to renovate or build at least one new science laboratory in every secondary school in the country".

"Our ambition - central to the knowledge economy - is to put in place a system of education and training that will allow every man and woman in Britain to meet their potential and develop their talents to the full at every stage in their life - from infancy to retirement," he said.

Following the launch of the Labour manifesto - Britain Forward Not Back - Labour is to produce new pledge cards.

The "manifesto pledge card" will include Labour's vow not to raise the basic or top rate of income tax along with six earlier promises printed on cards issued at the party's spring conference.

It will include a commitment to introduce a national ID card.