THE Chancellor will today give a broad hint that more Government money will flow into public services, but his message will be tinged with the economic realism about extra funds having to be earned.

In his keynote speech to conference, Gordon Brown will seek to portray New Labour as the party of economic competence, which has achieved the golden scenario of falling unemployment and inflation coupled with growth and rising job vacancies.

He will cut a very different figure from his Labour predecessor, Denis Healey, who in the late 70s oversaw an economy in decline and suffered the humiliation of having to go cap in hand to the International Monetary Fund.

In contrast, Mr Brown, praised internationally for his handling of the UK economy, is now chairman of the committee that oversees the IMF.

Following on from his assertion yesterday - ''My aim for the next decade for Britain is nothing less than full employment in the next century'' - Mr Brown will stick to his central aim that this Labour Government will not fall foul of the problems of previous ones, spending too much early on, only to drastically cut back later.

''In the years ahead we will always be vigilant about stability. Our Labour Government will never take risks about inflation. I will never let the deficit get out of control. We will not spend money we have not earned. We must never again let Tory economics ruin people's lives, and it's precisely because of what we have been able to achieve together that we can now raise our sights,'' he will tell the party faithful.

''Raising our sights'' is likely to be taken as a big hint that, if price and pay inflation can be kept under control, then more money will flow into public services.

''A high and stable level of employment is our goal. Not jobs for life, which no government can promise to deliver, but job opportunities for all through all their working lives.''

He will speak about workers and employers showing responsibility on pay and investment, stating that if they did, then: ''Britain can deliver in our generation employment opportunities for all. A goal this party has long sought, a goal now within our reach for the 21st century. Full employment for our country.''

The Chancellor will also speak of Britain's new economy having more competition, more entrepreneurship, and long-term investment. Companies, indeed countries, which fail to reform will simply fall behind.

He will add: ''We must never again become a party that is seen as anti-success. Our enemy isn't markets but monopoly, not competition but cartels, not profits but privilege.''

At a meeting of the International Monetary Fund and the World Bank in Washington last night the Chancellor claimed a significant breakthrough in the drive to secure international agreement on writing off the debts of the world's poorest countries.

Mr Brown and International Development Secretary Clare Short pledged a further #31.3 m towards financing the debt relief programme. The move, following intensive discussions in the United States capital, prompted other industrialised countries to promise a further $300m in aid.

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