John Prescott warned that the Tory party was strong

Mr Prescott also told delegates at the spring party conference that the party must prepare for local council and European Parliament elections in June.

"Let's be the first generation of Labour people who refused to tear themselves apart," he said.

He warned that the Tories were stronger now than they had been in years.

He said they were the only ones who would benefit from the lack of Labour discipline.

This Labour government could do more and could do better John Prescott Deputy prime minister

"Let's be under no illusions. The Tories are stronger now than they were under Iain Duncan Smith, they've got a spring in their step.

"They'll be fighting us in every seat," he warned delegates.

However, he praised Labour's achievements for the past seven years.

"We have shown it is possible to achieve economic success and not have to sacrifice social justice.

"Britain is now a more prosperous and fairer country since we took power.

"To listen to some of our Labour movement colleagues, you'd think our record was a seven-year jail sentence."

He acknowledged that "this Labour government could do more and could do better".

Tory nightmare

In the final conference speech, Mr Prescott mocked Tory leader Michael Howard's "I have a dream" slogan.

"A dream? You've only got to look round that shadow cabinet table to realise it's the British nightmare."

Mr Prescott, who visited Madrid in the aftermath of Thursday's fatal bomb attacks, said he "was moved by the scale of the protest" in the Spanish city.

He said the voices of the millions of people who took part had been heard around the world.

"I was proud to link arms with leaders from around Europe and with people from all over Spain.

Solidarity with Spain

"In their grief and anger we stand with them.

"Their fight is our fight too. Barbaric terrorism recognises no national boundary. Extremism, by its nature, knows no limit," he said.

He said the spirit of "defiance" in the face of terrorism was evident as the Spanish went to the polls on Sunday.

"The voters of that country choose to exercise their democratic rights in a general election and by doing so defy the terrorists," he said.

"And so the ballot box is ultimately more powerful than the bomb or the bullet - and in that we offer them our solidarity."