The Conservative leader has said his party is entering the New Year "in good heart".

In his New Year message, Michael Howard said the party was now "united in its purpose to offer the British people an alternative government".

His comments come as the party seeks to build on the increased support that followed the ousting of Iain Duncan Smith.

Looking ahead to the coming 12 months that will take the country closer to the next general election, Howard said his task would be "to speak up for millions of our fellow citizens who, though living in a first class country, too often have to put up with second class services".

And he indicated that the Tories would continue to develop their key policies.

"So, during 2004, the Conservatives will be putting forward our proposals to give people more control over the health care and education they want - policies suited to the needs of people in the 21st century," Howard said.

"We want to extend to everyone the choice that is now only available to those who can afford it.

"And we have to get government off the backs of the people - whether in business or in people's everyday lives."

He added: "Our responsibility in the coming year is to show people that we are able to bring about smaller government and give people greater control over the things which matter most to them.

"It is a noble challenge and we are determined to meet it."