Economic growth is turning people back to Labour, claims minister

Liam Byrne, Chief Secretary to the Treasury, said: "People are taking a second look at Labour because people are beginning to think about the future. For the past year and a bit, people have been worried above all about whether they are going to be in work next week, whether they are going to be able to hold on to their house.

"Now, as growth begins to return to the economy, people's horizons are beginning to stretch out.

"They are beginning to think about which party is going to do most for jobs in the years to come, and who is going to stand behind working families."

His comments came as the Conservatives and Labour set out their policy priorities for the forthcoming poll battle, and the Tories were forced to contend with more gloomy polling news.

A ComRes poll published today raises the prospect of a hung parliament with Labour gaining the most seats, despite the sample giving David Cameron's party a five-point lead. The poll, of 1,000 people, has the Tories on 37 per cent, down one percentage point from the last ComRes poll, with Labour at 32 per cent, up one. The Lib Dems remain unchanged at 19 per cent and others are at 12 per cent.

According to Professor John Curtice, of Strathclyde University, this would give Labour 294 seats, the Tories 277, the Liberal Democrats 46 and others 33.

Meanwhile, Prime Minister Gordon Brown set out his plans on law and order, putting the fight against crime and anti-social behaviour at the heart of the Labour electoral strategy.

Mr Brown accused the Conservatives of heightening fear of crime by "abusing" statistics.

He said: "You don't tackle the fear of crime by cultivating it, by ramping up a public sense of panic, by abusing the figures and claiming our society is broken.

"In the fight against crime we must always be vigilant. But we must also be careful. There are those who spread fear with fiction."