Blair: Third term bid underway

Tony Blair has named May 5 as the date of the general election, calling the vote a "fundamental choice".

The prime minister went to Buckingham Palace on Tuesday to seek the Queen's permission to dissolve parliament.

After exchanging the constitutional niceties with the monarch, he began his bid for a historic third Labour term of office with a short statement in Downing Street.

"I have just been to Buckingham Palace to ask the Queen to dissolve parliament, which she has graciously consented to do," he said.

"There will now be a general election in Britain on May 5."

He asked the electorate, who he referred to as "the boss", for a third term "to widen still further to opportunities available to the British people".

"Above all else to take that hard won economic stability, the investment in our public services and entrench it," he added.

"So its a big choice and a fundamental choice and there's a lot at stake."

He later launched Labour's campaign in the party's most marginal constituency of Dorset South.

The move set in train a frantic three days - and possibly one night - of parliamentary horse-trading as the government tries to get as much of its legislation onto the statute book as possible.

Blair also officially kick-started the four-week election campaign - although the drive will be halted on Friday and Saturday for the Pope's funeral and the rescheduled Royal wedding.

The announcement of the poll was delayed by 24 hours out of respect to the death of the Pope over the weekend.

'Mission'

Addressing the public through the waiting media and without notes, Blair promised to travel the country and explain his beliefs to the people.

"Our mission will be driven by values. I also want to talk to the country about the values which motivate us," he said.

"I believe in a country where hard work and merit - not privilege or background -determine success, a country where Britain's families get the modern healthcare, education, and childcare services that they need and on a fair and equal basis.

"A country that protects itself against the terrorist threat that we face but is also going to be about a big and positive vision for the future of our country.

"We are proud of what we've achieved but we should never stand still, and over the coming weeks we want to set out that vision."

Economy

Labour will put the economy at the heart of its re-election bid - with Gordon Brown set to play a key role.

The prime minister and the chancellor were set to stage the first in a series of 'double acts' as the formal election campaign was launched.

The chancellor made a speech on Tuesday morning trumpeting Labour's management of the economy before Blair headed to the Palace to seek the dissolution of parliament.

The prime minister too talked up Labour's economic record during the campaign launch, contrasting government investment with Tory 'cuts'.

He was addressing an audience selected to show how low inflation, low interest rates and high employment have boosted the lives of ordinary Britons.

In Downing Street he said he would explain "how on the basis of that economic stability we drive it further forward with a million new home owners and a rising minimum wage for the low paid".

Rivals

Michael Howard and Charles Kennedy kicked off their campaigns before the official announcement.

The Conservatives launched their bid for power in central London with a speech and photocall outside a hotel.

Howard then hit the road on a tour that will take in Birmingham and Manchester on Tuesday.

The Liberal Democrat leader also began a five-city tour in the North West.

However, it was the chancellor who set the first campaign theme of the day by extolling the UK's economic strengths at a breakfast time speech to a City audience.

Brown has returned to the heart of Labour's re-election efforts in recent days and trumpeted the government's record on growth, inflation and employment.

Debate

Conservatives are hoping to move the debate on from their spending plans to the key areas identified by party strategist Lynton Crosby.

The Tories will campaign on lower taxes, school discipline, cleaner hospitals, more police and controlled immigration.

Labour, however, is to mount a strong assault on the Tories - pledging new money for schools and hospitals against a background of the chancellor's stable economy.

The Liberal Democrats, meanwhile, hope to resurrect opposition to the Iraq war and capitalise on dissatisfaction with the council tax.

The party will also pledge to fund its commitments through a new 50 per cent income tax rate on the country's highest earners.

Some opinion polls have predicted that the election could be closely fought, but many expect a third term Labour government to be returned with a reduced majority.

The prime minister enjoyed an average opinion poll lead of around seven per cent in the run up to the campaign, although private party polling suggests he could have a nine point margin over Michael Howard's Conservatives.

But this appears to have narrowed in recent days with one poll putting the Tories ahead among those certain to vote.

Party sources believe turnout will be a crucial factor in delivering an historic third Labour majority.

And with the Tories and Lib Dems heavily targeting winnable seats, along with minor parties such as Respect, the Greens and Veritas, there could be many local exceptions to national swings.