Mr Blair was in Sedgefield to accept the nomination as Labour candidate

The Labour leader set out the choice facing voters - contrasting the Conservatives' 18 years in power with that of Labour's eight.

He said that in 1997 the Tories had spent more in interest payments on the national debt than on education.

The Tories meanwhile are focusing on immigration as the Lib Dems urged a more positive campaign.

Earlier, in an appearance on BBC One's Politics Show, Labour election chief Alan Milburn said the party's manifesto would be "radical and ambitious".

Labour nomination

He said: "It will be about realising traditional Labour values of compassion and opportunity but only doing so through modern policies."

The prime minister was in Sedgefield to accept the local Labour Party's nomination as candidate for the 5 May poll.

He contrasted favourably the record of his government on education with that of the last Tory administration.

Mr Blair said nearly �1000 more was being on each pupil every year than in 1997, that investment in school buildings was up "seven-fold" and that there were 29,000 more teachers.

Real danger?

Mocking the Tory election slogan of "Are you thinking what I'm thinking" Mr Blair asked: "Are you remembering what I'm remembering?"

The Labour leader then turned his sights on the economy.

"There is a real danger in this election that people take the economy for granted, as a given. It isn't," he said.

"It was won by hard work. It would be undone by the shoddy, slapdash promise 'anything to anyone' nonsense that is the Tory economic economic plan. We do remember and that is why we never want to go back."

Values?

Mr Blair then challenged the electorate to "understand the importance" of their choice at the election.

He said: "If you value economic stability you have to vote for it. If you value the New Deal or the minimum wage or tax credits, you have to vote for them.

"If you value more childcare, you have to vote for it. If you value the NHS you have to vote for it. If you value investment in state schools you have to vote for it.

"Only if you want to take Britain back to economic failure, public service cuts , communities torn apart , should you opt out of this election."

Chancellor Gordon Brown meanwhile pledged the largest programme of investment in education ever seen in Britain if Labour was re-elected.

He said the party's plans would bring spending per pupil to more than �5,500 by 2007/8 - up from �2,500 in 1997.

The chancellor also accused the Tories of planning to take �2bn out of state education to subsidise private schooling for a minority with their "pupil passport" plans.

He said the school vouchers was "so extreme" a policy, it had been rejected by Sir Keith Joseph and Margaret Thatcher.

Mr Brown said: "We seek a Britain of ambition and aspiration."

There must be "no limit of opportunity", he said.

To compete with the rising economic powers of China and India, Mr Brown said: "We must tap all of the potential of all of our people."

Shadow education secretary Tim Collins said: "One week in, and Gordon Brown is leading the Labour campaign into the gutter with these outrageous smears.

"Our spending plans allow for #5,500 per pupil by 2007-8 - matching the sum set out by Gordon Brown."