Theresa May has called for the Conservatives to offer a "credible alternative" to Labour.

The party chairman told the party's Spring Forum in Harrogate that members should "lock into the public mood and act as 21st Century Conservatives".

Following her controversial "nasty party" speech at the Autumn conference last year, May urged Tories to put recent divisions aside as they fight to win more seats in the upcoming council elections

"It means working together as one party united," she said.

The speech appeared designed to put to rest suggestions that the party should adopt either "modern" or "traditional" approaches to policy.

"There is no contradiction between helping young criminals off the conveyor belt to crime and putting more policemen on the streets to crack down on crime.

"There is no contradiction between supporting business and helping the vulnerable. And above all there is no contradiction between a low-tax economy and better public services," May argued.

She added that "everyone should have a fair chance to fulfil their potential".

The Conservatives should also show the public that "we care passionately about the things they care about".

May also stressed the importance of Conservatives "emphasising their openness and honesty, being clear about where they stand, and being ready to take the tough decisions needed to improve front line public services".

Party strategists are predicting as few as 30 gains for the Conservatives in the May polls, but the two-day conference aims to provide a call for action by supporters.

While the conference was intended to give boost the party's campaign for the May 1 local elections, there were signs it could be overshadowed by the threat of war in Iraq.

In a change to the original schedule party leader Iain Duncan Smith was making a short speech on Iraq on Saturday and winding up the event with a keynote address on domestic policy on Sunday.