The Guardian reports that Tony Blair's future as prime minister could depend on whether he secures a radical manifesto for a third term in office.

Blairites are said to fear the "safety first" option preferred by chancellor Gordon Brown.

Meanwhile, John Reid has sought to end speculation about the prime minister's future.

"If the British public is willing and God is willing, Mr Blair will serve a full third term, the health secretary said.

Another minister tells the Independent that Blair was "full of fizz" as he presided over a political session of the Cabinet yesterday.

Meanwhile it is business as usual, with the prime minister set to announce the appointment of 23 new Labour peers.

The cast list, which will provoke fresh cronyism charges, is said to include pollster Philip Gould.

The Tories and the Lib Dems will secure 13 new peers between them - thought to include former Conservative Treasurer Sir Stanley Kalms and Jane Bonham Carter, a leading member of the liberal establishment.

Writing in the FT today, political editor James Blitz says Blair's position is underpinned by key factors including Labour's poll lead and the strong economy.