Tony Blair has launched his party's local election campaign with a warning against a return "to the failed policies of the past".

Taking the Conservatives head on, the prime minister claimed Britain is working under his stewardship - with a warning of the risks of a future Conservative government.

Delivering an upbeat assessment of Britain today, the prime minister appealed to voters to stick with Labour.

"It is the strength of our economy which has allowed us to make record investment in our health service, in our schools and in record police numbers," he said.

"And to those who said that money is wasted I say simply go and look at the evidence before your eyes in your local community.

"What I believe we must do is build on the success that Britain has achieved."

Blair said voters had a "very clear choice" at the forthcoming elections.

"We know this country is working," he said. "There is no area, which hasn’t seen real change and improvement."

Past policy

As the campaign gets personal, Labour is launching an election poster highlighting the Conservative Party's past.

It features images of Michael Howard, Lady Thatcher, John Major, William Hague and Iain Duncan Smith, along with the slogan: "Britain is working. Don't let the Tories wreck it again."

The party has chosen the 25th anniversary of Margaret Thatcher's 1979 election triumph to remind voters of the links between the current Tory leader and those who held the post before him.

Ahead of the launch, John Prescott signalled that the campaign was set to get personal.

Branding Howard as "Thatcher's child", the deputy prime minister said: "He gave us poll tax... He gave us a million unemployed... It is fair to point out what their record was."

Legacy

But the attack has been rejected by the Conservatives - who believe Labour's strategy could backfire.

"Tony Blair must have a very short memory," said party chairman Dr Liam Fox.

"Many times in the past he has talked about his admiration for Margaret Thatcher - even if his policies have ended up undermining her achievements.

"It is a pity that today of all days - the 25th anniversary of the election that brought her to power - he could not have been statesmanlike enough to recognise her vital contribution to British history rather than launching a poster campaign designed to demean her.

"Perhaps at this present time with his own leadership under question, the memory of 1979 - when a rejuvenated Conservative Party trounced a discredited and failing government that had let the people down - is a bit too near the knuckle."

The Liberal Democrats dismissed Labour's launch, saying voters will find it difficult to "spot the difference" given that both parties remain committed to the council tax.

"While Mr Howard and the Conservatives invented the unfair council tax, Labour has made it even worse," said Ed Davey.

"Both parties strongly support the council tax and have published no proposals to change it.

"Voters want to see council tax abolished and the Liberal Democrats are the only party to spell out a fair alternative."