Britain should be a more "meritocratic" country, the Conservatives are set to say.

The party's co-chairman Dr Liam Fox, will attack what he sees as the government's failures when he address grassroots activists in Harrogate on Saturday.

He will also return to the traditional themes of cutting state control and increasing personal freedom.

"As we have become a wealthier nation, we should have extricated ourselves from the grasp of the state," he will say.

"The opposite has happened. The government’s intrusion into people’s lives has not diminished. It has become all-pervasive."

Fox will argue that the party should renew its credentials as the champions of aspirational values.

"There is no doubt that we Conservatives are at our most successful politically, and we British at our most socially cohesive, when we are at our most meritocratic," he will say.

"For us, it does not matter where an individual comes from, who his parents were, or the colour of his skin.

"We do not see our society as a collection of minorities, but rather as a wide spectrum of individuals, each with their own talents. The Conservative Party judges people not on their background but on their aspirations."

He is also expected to set out the challenges facing the Conservative Party in the run up to the next general election.

"All too often, we in the Conservative party are too modest to point out how we ourselves have benefited from the changes we have brought about, not only in our own party but in society generally," he will say.

"I doubt if Michael Howard's parents ever believed he would lead the Conservative Party, let alone be on the verge of leading it back to government. And my grandparents would certainly never have believed that their grandson could become chairman of the Conservative Party."

The second day of the conference will discuss how its policies could create opportunities for young people.

Dr Fox will argue that the party must move away from its traditional heartland and attempt to attract young voters.

He is expected to tell the party that although young people have more opportunities than ever before they also face greater uncertainties.

Senior members of the shadow cabinet Theresa May, David Curry and Oliver Letwin will discuss the environmental and social challenges.

The afternoon is expected to be dominated by a debate on the economy and public services.

Party leader Michael Howard yesterday set out the wider issues that must be addressed before the next general election and gave an upbeat assessment of prospects.

"The Conservative Party is in good heart," he said.

"Our task is clear: to offer the British people a real alternative to this failing and discredited government, a government whose word cannot be trusted.

"We need to show people that we can make a real difference to their lives. That is our goal."