Prime Minister Tony Blair arrived in wind-swept Brighton this morning, stern-faced and hand in hand with his wife Cherie.

He made no comment ahead of his speech to the Labour Party Conference tomorrow afternoon as he walked in to The Metropole Hotel.

The Labour Party has declined to reveal where he is staying amid tightened security at this year's event in the wake of the terrorist atrocities in America.

This morning delegates at the Brighton Centre heard Chancellor Gordon Brown announcing tough new powers to block the funding of terrorist groups.

Mr Brown told the conference that ready access to money was the "lifeblood of terrorism" and must be stopped.

He revealed the Government had already frozen £60m of UK-based assets - including a bank account held at the London branch of a European bank last Wednesday.

But he said police would now be given even greater powers to monitor and freeze the accounts of people suspected of involvement in terrorism.

At present, they are only allowed to do this when the money contained in the bank account is believed to have been obtained through criminal activity.

In the future, police will be able to apply for warrants to monitor and stop accounts containing "clean money" destined for terrorism purposes.

Mr Brown told delegates in Brighton: "It has now fallen to our generation to bear the burden of defeating international terrorism."

The news came after Tony Blair announced plans for emergency legislation to close the net on terror suspects.

These will include measures to tighten up the asylum laws, speed up the extradition process and to stop bureaux de change being used to launder money for terrorism and drug trafficking.

Mr Brown said pursuing a stable domestic economic policy was one of the best responses to the terrorists.

He said: "We will show by our actions, in maintaining conditions for stability and growth, that we do not surrender to terrorist threats."

He pledged that current cash increases for health and education were already locked in.

But, with the international crisis sparking continuing fears of a global recession, and the costs of military action against terrorism still unknown, he said the economy was facing "testing times".

Trade Secretary Patricia Hewitt told delegates she had rejected calls from struggling businesses to reduce the minimum wage.

From today, the minimum wage was £4.10 per hour - an increase of 30p.

Outside the conference, ministers took tours and visits around Brighton and Hove.

Culture Secretary Tessa Jowell visited the tourist information centre in Bartholomew Square, Brighton, to ask staff how the industry was faring.

Amanda Shepherd, head of tourism and conferences for Brighton and Hove, told her some American travellers had cancelled visits to the city.

Ms Shepherd said: "Also, the TUC conference and the Labour conference have been cut short so it has had an economic impact in that way."

The minister also met Brighton MP David Lepper and Ken Bodfish, leader of Brighton and Hove City Council.

Education Secretary Estelle Morris took time out from the conference to visit a school which has been put under special measures.

Ms Morris checked on the progress being made at East Brighton College of Media Arts (Comart) in Whitehawk, Brighton, this morning.

She talked to pupils in a media studies class and listened to a lesson in information, communication, and technology.

Head teacher Dr Jill Clough said: "The message we gave Ms Morris was that the media and arts specialisation was really beginning to improve children's attainment."

The rest of today's conference was due to be dominated by domestic issues, including the continuing controversy about the Government's plans to give the private sector a greater role in delivering public services.

After five hours of talk last night, unions and constituency parties agreed a motion on the public/private debate to be put to the conference today.

The motion - to be moved by Unison and supported by the Manufacturing, Science and Finance Union as well as 11 constituency parties - reads: "Conference does not believe that high quality or value for money can be achieved by privatisation of public services.

"The Government will not achieve its aim of improving public services only through involving the private sector in the provision of public services."

Meanwhile, a petition signed by more than 1,500 people was presented to housing minister Lord Falconer last night.

The petition was handed over to draw attention to the number of people in Brighton and Hove who are forced to pay high rents and cannot afford to buy homes of their own.

Hove Labour councillor Heather James, one of the people behind the petition, said: "Too many people in the city are being forced to live in sub-standard accommodation because they cannot afford higher rents and do not earn enough to buy a home of their own."