The Conservatives are back as an effective force in British politics, Michael Howard has said.

Addressing his party's spring forum in Harrogate, the Tory leader said his party had rising membership and was a growing force in local government.

"In short, the Conservative Party is back.  Back as the only alternative to this failing and discredited Labour government," he said.

In his first speech to a major party conference since taking over the leadership, Howard spelt out his view of the differences between the Conservatives and Labour.

Saying that the next general election would see Britain at a crossroads, Howard also said the country had a "clear choice about the direction we take".

"One road leads to an ever bigger role for the state. Higher taxes. Higher government spending. A country in which big government knows best," he said.

"The other road leads to a country in which people pay less tax and have more control over their lives. 

"A country in which individuals have the freedom to determine their own destinies and make the best of their talents. 

"A country in which people are big and the state is small."

Battle lines

Howard said these issues would form the battle lines at the next general election and that the Conservatives had to spell out their alternative to Labour's vision for the UK.

"We owe it to this great country of ours to show that there is an alternative," he said.

"An alternative to Labour’s never ending cycle of tax and spend and failure to deliver.  That alternative is lower taxes and smaller government:  trusting people and giving them control. 

"Britain is looking for a new approach.  And it is up to us to convince the people that our way - the Conservative way - is a better way."

Taxes and spending

On spending, Howard said the party would concentrate on key areas such as health and education.

The party also wants to lower taxes, he said.

"We believe that low taxes give people the opportunity to make their own decisions: decisions to save, to give, to spend, to keep more for their families and their children. 

"People grow in confidence, and grow morally, when the state gives them that opportunity by taking less from them.  That is the moral case for lower taxes.

"But there’s another reason to lower taxes.  Low tax economies are the most successful economies.  They create more jobs, they grow more businesses, and they increase people’s wealth. 

"So we have both a moral and a practical case for lower taxes.  That is the difference between Labour and the Conservatives.  A difference that deserves to be debated in a serious way."

Labour's record

Howard called for a "grown up" debate about his party's plans, and said that he was angered by Labour's failures.

"Britain is at her best when she aims to be the best.  That is my aspiration for our country," he said.

"But when I look around me today I see so many missed opportunities. And that makes me angry too."

The Tory leader said Labour's "tax and spend" approach to government, coupled with increasing red tape, was damaging Britain's economy.

 "I accept that Labour want the best for our country.  They just want to do things in a different way.  The wrong way," he said.

"They spend without reform.  They tax by stealth.  They regulate remorselessly.  And they have failed to deliver the improvements that our country is desperate to see."

Howard also took a swipe at the Liberal Democrats, saying they were not a "credible alternative".

More choice

Setting out his alternative vision, Howard said he would give people more choice over key services.

"People want more control over the public services they use," he said.

"Tony Blair sometimes sounds as though he understands that.  He sometimes sounds as though he’d like to do something about it.  The trouble is he can’t deliver. 

"Tony Blair will never be able to deliver the changes that our country needs.  He can’t do it because when push comes to shove he is a Labour prime minister.  His party won’t let him.  The trade unions won’t let him.  And Gordon Brown won’t let him.

"He’s impotent now with a majority of over 160.  What on earth would he be like in a third term?  To vote Labour next time is to vote for a government that has run out of steam, run out of ideas and has reached a dead end."

Howard said Labour's time was up and the government "has had its day".

"Voters will have to choose between those two visions:  big government that knows best or smaller government where people are trusted to take control. 

"It’s a historic choice.  It will determine our future for generations."