Brown's vision may frustrate the party's left-wing

In a document setting out Labour's third-term priorities, Mr Brown said next year's spending review would focus on providing "tailor-made services."

Mr Brown also called for economic reform, to make Labour the party of the employer, as well as the employee.

On Friday, Tony Blair unveils the full document, which Labour hopes may be the basis of its next election manifesto.

'More choice'

Mr Brown set out the two economic chapters of the consultation document before Prime Minister Tony Blair launches the full document in Wales on Friday.

A Future Fair For All, an overview of Labour's plans and its view of the problems facing Britain, was agreed earlier on Thursday by the party's policy commission.

The chancellor called for further modernisation of public services and greater economic reform.

On public services, he wants more choice and an end to the "one size fits all" approach.

"In the way that in the past six years Labour has become the party of stability, New Labour must now become the party of enterprise and flexibility," he said.

"And just as we have always been the party of the employed, our party's modernisation will not be complete until it has become the party of the self-employed, managers and employers and business as well as employees."

Spending review

The chancellor said flexibility was needed to achieve full employment and encourage the enterprise for both economic success and social justice.

"Just as we have made economic reform a priority for Europe, Labour must embrace an ever more radical agenda of economic reform in Britain," he continued.

"The new Labour way is flexibility with fairness, equipping people to master change."

Mr Brown said next year's spending review, which sets out cash plans for the following two years, would focus on areas giving people more choice to ensure public services meet their needs.

Housing changes

The document also highlights planned changes to the welfare system, with jobless benefit claimants facing tougher checks on whether they are really looking for work.

Proposals for encouraging more private rented housing are also included.

Mr Brown's bullish support for public service reform may raise eyebrows among trade unionists and Labour traditionalists, where he is usually seen more sceptical about such changes.

The whole Labour document is part of Labour's "Big Conversation", which Mr Blair has dubbed the biggest consultation document ever seen in Britain.