Tony Blair praised his chancellor's role is handling the economy

He said 10 years of investment in local communities by Labour had, among other achievements, improved schools, health and transport, and cut crime.

Visiting Nottingham with Gordon Brown, his likely successor, he praised the chancellor's economic record.

The Tories and Lib Dems have also been focusing on law and order.

Mr Blair said Mr Brown's stewardship of the economy had become "one of the strongest in the world" and was the foundation of Labour's investment in public services.

If people took a step back and looked at the record, particularly on things like anti-social behaviour we'll be fine Tony Blair

"We've never had a Labour chancellor who's delivered that sort of economic record, in fact we've never had a chancellor of any party who has delivered that sort of economic record," he said.

They launched their campaign in Nottingham, a city that has been Labour- controlled for 20 years but which the party is in danger of losing.

However, Mr Blair said he did not think Labour would face heavy losses because of issues like Iraq or the current pensions debate.

"If people took a step back and looked at the record, particularly on things like anti-social behaviour, we'll be fine," he said.

Longbridge visit

Mr Brown added: "What the voters of this country are saying is they want economic progress, better public services and their quality of life to improve.

"When we are building for the future, we are building on success."

Both men later headed to Longbridge in Birmingham, where they visited an employment scheme to help former Rover workers - more than 6,000 people lost their jobs when the plant closed in April 2005.

Of the 6,346 employees who lost their jobs only 260, or 4%, have not yet found work, although many people had to look outside the engineering sector for jobs.

I suggest the commentators doing us down haven't been out on the streets Jack Straw Tories reveal police plans Reject Labour, say Lib Dems Q&A: The 2007 elections

Meanwhile Home Secretary John Reid and Commons leader Jack Straw visited Blackburn to launch the campaign in the North West.

Both denied predictions that the party faces heavy losses on 3 May.

Mr Straw, who is also heading Mr Brown's leadership bid, said: "We've faced similar predictions before, gone out into the communities as we are doing and found the confidence in Labour about how we can improve people's lives is there.

"I suggest the commentators doing us down haven't been out on the streets."

The elections take place in 312 local authorities on 3 May, with those for the Scottish Assembly and Welsh Assembly being held the same day.

Mr Blair, who has said he will leave office this year, is expected to announce a departure date shortly after the results are known.

The Liberal Democrats also launched their campaign on Tuesday.

Leader Sir Menzies Campbell emphasised the success Lib Dem councils have already had in cutting crime locally.

The Conservatives have not staged a campaign launch, but did unveil plans for police reform on Tuesday.