Tony Blair yesterday set out plans for wide-ranging economic and public service reforms, while suggesting strongly he will stay in Downing Street for a substantial slice of Labour's third term.

In his keynote speech to the party's conference in Brighton, Mr Blair brushed aside critics of previous reforms and his decision to commit British forces to Iraq.

He declared his prescription for the challenges facing the UK is an intensified dose of New Labour reform.

Amid continuing speculation over how long he can hold on to power and whether and when Chancellor Gordon Brown may move into No 10, Mr Blair made clear he sees a significant programme of work ahead of him.

While paying tribute to Mr Brown's achievements as Chancellor, Mr Blair emphasised his own leadership credentials, telling delegates that the determination to face new challenges is so ingrained in him that it is "like a strip of granite running through my being".

In his speech, Mr Blair tackled his close relationship with US President George Bush as a source of huge irritation for many activists, defiantly insisting: "Britain should also remain the strongest ally of the US ... I never doubted after September 11 that our place was alongside America and I don't doubt it now."

And he insisted that British forces will remain in Iraq for the time being.

Mr Blair gave little time to the concerns of some activists and union leaders about the consumer and market-orientated flavour of previous reforms. The challenges posed by the phenomenon of globalisation required Britain to change further, and quickly. Mr Blair urged the party to continue to be "change-makers".

The Labour leader, who urged his party to renew itself in office to be fit to face future challenges, signalled further reforms to the economic infrastructure, the NHS, education, transport, and law and order:

He flagged up major reform of Incapacity Benefit, promising that next month the Government will publish proposals "radically to reform the benefit for the future and help people who can work, back into the workforce where they belong".

The Government will publish plans for pensions reform next year. Alongside a state pension, Mr Blair said there will be a "simple easy way for people to save and to reap the rewards of their savings".

Also next year, the Government will set out a new energy policy, which could involve a new generation of civil nuclear power stations.

On transport, the Government will continue to examine new options for funding improvements to the infrastructure, including road pricing.

On local government, he promised a "new and ambitious blueprint" strengthening the leadership of cities, giving effective councils new freedoms and devolving more power to neighbourhoods.

He insisted NHS reforms designed to bring in new service providers and allow patients greater choice will continue.

Similarly, an Education White Paper in the autumn will set out plans to open up the system to new providers and new partners, allow greater parental choice, and expand Foundation, Academy and extended schools.

He signalled the Government will press on with its plans to introduce a national identity card scheme.

Mr Blair flagged up a radical extension of summary powers to police and local authorities, focusing on binge-drinking, drug dealing and organised crime, and development of the existing laws on anti-social behaviour. Plans will be published by the end of this year, he said.

Reacting to Mr Blair's speech, Celia Barlow, Labour MP for Hove and Portslade, said: "The Prime Minister made some important comments about the need to take advantage of technology and expertise in the workforce to compete economically worldwide."

Others expressed concerns about Mr Blair's vow to push ahead with reforms of public services.

Des Turner, Labour MP for Brighton Kemptown, said: "There will be some argument about his comments on the involvement of the private sector in public services. We should not use the private sector for its own sake."

Francis Tonks, Brighton and Hove councillor, said: "I'm uneasy about the involvement of the private sector in public services. Privatisation is a step backwards and my views are shared by a considerable number of party members."

Wednesday, September 28, 2005