Alan Milburn has warned Labour traditionalists to expect more "controversial" policies if Tony Blair is re-elected.

Speaking on Saturday, the party's election co-ordinator indicated the government is determined to press ahead with further reforms to Britain's public services.

Policies such as foundation hospitals and university top-up fees have already prompted large backbench rebellions and criticism from some left-wingers.

Milburn vowed that a third election victory would allow the party to govern on its "own terms".

"There is no change without controversy. But there is no prospect of social justice without," he told a Fabian Society conference.

"It is not about undermining our values. It is the way to realise them."

He added: "A government resting on its laurels is nearing the end of its life."

"Reform is not a process that starts one day and ends the next. It must go on and on and on."

Milburn also told BBC Radio that the government's focus was on allowing "more people to be able to earn and own".

"That is what people want. It is what Labour policy in the end is all about," said the Cabinet minister.

He accepted that "change is often a controversial thing".

"The easiest thing in politics, just as in life, is to leave everything the same but that is not what the Labour Party is for. The Labour Party is there to change something," he said.

The Conservatives said the speech was "yet more talk".

"Labour have been in power for nearly eight years, but despite all the promises they have failed to tackle the real issues that matter to people - no one can trust a word they say," said party chairman Liam Fox.

Liberal Democrats president Simon Hughes said that "New Labour has lost people's confidence in a way old Labour never did".

"If Mr Blair and Mr Milburn think they are going to storm to victory by offering more of the same in the months ahead, they will be greatly mistaken."