Tony Blair published Labour's manifesto for a third term yesterday, promising a package of reforms and tax cuts for "hard-working families."

The prime minister, who, in contrast to Michael Howard was flanked by his Cabinet colleagues at his launch, said the document offered a "big vision" for the people of Britain.

"This manifesto has specific, detailed costed policy in it," said Blair.

"I believe this country is better, stronger, fairer than the country we inherited in 1997."

The prime minister told journalists he wanted to establish a "progressive consensus" around core New Labour values and that his legacy of reform and modernisation would remain stamped on the Labour government long after he had left it.

The chancellor, tipped as Blair's heir apparent, said he was committed to "diversity of provision" across all public services.

Labour highlighted more than 270 pledges in its manifesto.

New promises included building a new generation of NHS community hospitals, making all secondary schools independent specialists and new measures to tackle anti-social behaviour.

Although Gordon Brown promised that Labour would not raise tax rates in the next parliament, while leaving open the possibility of a national insurance rise, Labour's campaign was hit by an intervention by the International Monetary Fund, which warned him that he would have to cut spending or put up taxes.

The IMF told him to hasten the pace of "fiscal consolidation" or cut borrowing to meet his fiscal rules.

Michael Howard called the report a "tax bombshell" but shadow chancellor Oliver Letwin "undermined" his claims, according to the Telegraph, by failing to rule out Tory tax rises.

Brown said the IMF and Conservatives had got it wrong.

The FT declares that the launch "resembled a bizarre West End play about a television show" but also says that there were "no weak links as Blair's team gives all the right answers."