Both politicians launched their party election campaigns

Labour used the 25th anniversary of Margaret Thatcher becoming prime minister to warn voters against letting the Tories "wreck it again".

Meanwhile the Conservatives set out plans to cut bureaucracy in Whitehall, while promoting their record in running local government.

Liberal Democrat leader Charles Kennedy will launch his campaign next week.

In Birmingham, Tory leader Michael Howard said "Conservative councils keep taxes low" and argued that his party's policies made a difference "without costing the earth".

He added: "Under Labour, the tentacles of Whitehall have begun to strangle local councils. Today in Britain, councils face greater burdens, more regulations and higher charges all because the Labour Government wants to be in control."

Echoing slogans

Labour bosses chose Leeds for the launch of their campaign.

Flanked by Gordon Brown, John Prescott and Labour chairman Ian McCartney, Tony Blair echoed the words used by Margaret Thatcher as she stood on the steps of 10 Downing Street for the first time as prime minister and quoted Francis of Assisi.

He said he wanted to make sure that "in each of the communities of this country where there has been despair we put hope, where there's been underachievement we put ambition for the future".

Tony Blair travelled to Leeds to start the Labour campaign

Labour has produced a poster showing Baroness Thatcher's head alongside that of Tory leader Michael Howard, and predecessors John Major, William Hague and Iain Duncan Smith.

Using wording echoing Conservative slogans from 1979 and 1987, it states "Britain is working. Don't let the Tories wreck it again".

Mr McCartney said Lady Thatcher had pledged to bring harmony and hope to Britain but the reality was mass unemployment and two deep and damaging recessions.

He said: "Michael Howard may be nostalgic for this time, when he was employment secretary and unemployment rose by one million, but for the British people it is a reminder of a failed Tory past for which hard working families had to pay the price."

At the Tory campaign launch Mr Howard was joined by joint party chairman Dr Liam Fox and local government spokeswoman Caroline Spelman.

Bureacracy

Ms Spelman said: "Conservatives believe in providing value for money for local taxpayers.

"Conservative councils charge an estimated �53 per year less in Band D council tax bills than Labour and Liberal Democrat councils in England.

"We have shown that you get better services and lower taxes from Conservative councils.

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

"We need to free local councils from unnecessary bureaucracy and costly demands imposed by central government, whilst at the same time reinforcing local accountability so that councils are held to account primarily through their electorate."

Mr Prescott meanwhile told BBC Radio 4's Today programme that Labour's record in local government was "far better than the Tories and both of us are better than the Liberals".

Abolition?

He added: "Labour is doing well in its local authorities and our cities are getting better, cleaner, safer."

But Lib Dem local government spokesman Ed Davey said voters would "find it difficult" to spot the difference between the Tories and Labour.

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

"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."

Meanwhile. a poll published to coincide with the two campaign launches suggested Mr Howard was on level pegging with Mr Blair.

Of the 2,026 people asked by YouGov who would make the best prime minister 29% backed Mr Howard - the same number who opted for Mr Blair.