Promising national crusades on housing and education, Gordon Brown has pledged to harness "the driving power of social conscience".
The chancellor, speaking at a conference in Manchester where he was confirmed as leader of the party, said Labour must "have a soul".
Brown, who takes over as prime minister on Wednesday, paid tribute to Tony Blair.
"When all the history books are written your achievements are unprecedented, they are historic, and I know they are enduring," he said.
And introducing Brown onto the stage, Blair had told the conference that Brown was "a man with every quality to mark him out as a great prime minister of our country".
"I know from his character that he will give of his best in the service of our country. And I know from his record as chancellor that his best is as good as it gets," he said.
Aspiration
In a wide-ranging speech that set out the domestic and international challenges for his premiership, Brown put the emphasis on combining aspiration with social justice.
But in a speech that sought to reunite the Labour Party after the divisions of the past, there were only passing references to public service reform.
Brown said his government would "continue our successful reforms", later adding that there would be no success from "retreating to failed approaches of the past".
Describing Britain as a country of "rising aspiration", the incoming prime minister said services could no longer be provided as a basic safety net but had to cater to individual needs.
There is a "yearning for stronger communities in Britain", he said.
"We are learning an inescapable truth. It is only by engaging people in the decisions that matter to their lives, only by a new government building trust by involving the British people, that we as a country will meet the new challenges of 2007 and beyond.
"So as people's aspirations and priorities change, we the Labour Party must renew ourselves as the party of change."
Conviction
Describing himself as a "conviction politician", he spoke of the need for everyone to have a fair chance in life.
"Call it 'the driving power of social conscience', call it 'the better angels of our nature', call it 'our moral sense', call it a belief in 'civic duty'," he said.
"I joined this party as a teenager because I believed in these values. They guide my work, they are my moral compass. This is who I am."
And he told the public that "the new government I will lead belongs to you".
"I will work hard for you. I shall always try my utmost. I am ready to serve," he said.
Priorities
He promised affordable housing would be a priority for 2007, with the housing minister to attend cabinet.
He reiterated his pledge to build new eco-towns and villages, and said the government would involve the public in a "national debate about the future of housing [to] make affordable housing for all one of the great causes of our time".
On schools, he said the education secretary would announce over the next few weeks plans to connect every school with businesses, universities, colleges and the voluntary sector.
Ending child poverty within a generation would be at the heart of what his government did, Brown said, while the NHS would be his "immediate priority".
He said there would be improvements in accessibility and hygiene, and progress in "putting more power locally in the hands of patients and staff".
"I propose that as we approach the 60th anniversary of the NHS we discuss a new settlement for a modern NHS free at the point of need – clear about where accountability lies – clear where government should set overall objectives, clear where it should not interfere, and clear how independently local people should have their voice heard and acted upon in shaping the future of the NHS," he said.
Britishness
He again returned to the theme of 'Britishness', calling for an affirmation of the shared values of "liberty, civic duty and fairness to all".
He said the government would "meet our international obligations" in Iraq, but would "learn the lessons that need to be learned".
He indicated the Department for International Development would be strengthened, while policies on aid, debt relief and trade would be brought together.
Brown repeatedly promised a "new and better relationship between government and the British people".
He said: "The power of government can never substitute for the empowerment of people. The days of Whitehall ever thinking it knows best are over. We need government that does not overreach but reaches out; government as servant at all times putting opportunity in the hands of people."
He said his principles of constitutional reform include giving more power to Parliament and empowering local communities - with "citizens' forums" and "citizens' juries" set up to renew trust in government.
"As a party we have always known that we succeed best when we reach out to and engage the whole community," he said.
"So here I stand proud of our Labour Party but determined that we reach out to all people who can be persuaded to share our values and who would like to be part of building a more just society.
"So my message today is also to people who want to change from the old politics, who yearn for a public life founded on values, who are inspired by what we as nation can now achieve together – join us. Join us in building the Britain we believe in."
Dods Parliamentary Communications Ltd