Prime Minister Tony Blair heads to Labour's party conference having admitted that the government was seeing "difficult times".

Having suffered at the hands of fuel protesters, the embarrassment of the Millennium Dome, allegations of sleaze concerning Bernie Ecclestone's £1m donation, and the Tories overtaking them in the polls, Tony Blair has the daunting task of restoring confidence in the party before a conference which could be the last before the general election.

Labour's fightback

The annual conference of the Government is seen by many as the most important event in the political calendar.

As well as discussing policy documents and voting on them, this year Labour will be putting in place the main planks of its manifesto on which it will fight the next general election.

Top of Mr Blair's agenda will be to reverse the eight-point lead the Tories have in the polls.

Labour had hoped this year's conference would be a tub-thumping event to get the party ready for what looked like a certain victory in an election expected next year.

Instead, the Prime Minister has been battered by fuel price protests that almost brought the country to a standstill and by a reheated scandal over a massive donation to his party raised questions about whether he had misled the public.

The government was further embarrassed when a buyer for the cash-guzzling Millennium Dome pulled out at the last minute amid fresh financial concerns.

"These are difficult times for us but I believe what is important is for us to keep focused the entire time on the big issues," Blair said.

Those key issues - Labour's delivery of a stable, growing economy, the creation of a million new jobs and hefty investment in schools, hospitals, transport and crime-fighting - added up to a good story to tell the electorate, he said.

"It's not how you deal with the easy time but how you deal with the testing times," he said.

Further protests

Despite the Prime Ministers attempts to focus on positive and highlight the achievements of Labour, it will be the target for more protests.

Angry farmers plan a march and tractor rally outside in a bid to highlight their battle against high fuel prices, red tape and falling incomes.

The National Farmers' Union, which is organising the peaceful demonstrations says that despite their innovative attempts to stay in business, farmers' incomes are at their lowest levels since the 1930s.

Many farmers are receiving the same price for their goods as they did in the 1970s despite higher prices in the shops.

They want Agriculture Minister Nick Brown to show that the promises made at the Downing Street agriculture summit in March are being honoured.

The key concerns are:

- Too much red tape and over-regulation, ranging from unhelpful planning policies to meat hygiene charges that have wiped out smaller abattoir.

- A Government economic strategy that encourages a strong pound, leading to cheap lower quality food imports and damage to farmers' export markets

- Current and threatened taxes like fuel duty. Costs are passed down through the food distribution network to farmers.

The proposed Climate Change Levy could wipe out many farmers and growers, says NFU member and organiser Carola Godman Law who has a beef and arable farm.

She said: "The situation for farmers is so severe that people who would normally steer clear of demonstrations, are taking to the streets to tell the Government that their livelihoods are at stake."

A pension problem

Although Gordon Brown has promised an extra £12 a week for pensioners on the lowest incomes, the chancellor's refusal to restore the link with average earnings is likely to result in an emergency debate.

The TGWU's Bill Morris said the restoration of the link was the union's "number one priority".

Pensioners' champion and former Cabinet minister Dame Barbara Castle, 89, and ex-union leader Jack Jones are due to address a meeting on pensioners' rights in Brighton - just before Mr Brown make his keynote speech in the main conference hall.

The chancellor is expected to stress the benefits of his tough economic strategy during the past two years and say his package for poorer pensioners will give greater help to those who need it than anything proposed by his opponents.

Mr Blair insisted he was listening to people's concerns, saying pensions were the "top thing" on his mind.

"If you ask me what my top priority is at the moment, it is to get more help to pensioners," he said.

The government raised the state pension by 75 pence this year. Polls show the elderly are turning their backs on Labour in droves.

Conference schedule

The outline schedule for the conference is as follows, but this is an unconfirmed list and the timetable is subject to change.

The highlights will be of course Tony Blair's speech on Tuesday but also Mo Mowlam's address, which will probably be the popular politician's last as an MP.

Sunday 24 September

Changes to local party structures - Ian McCartney

Cabinet Office Minister Mo Mowlam

Home affairs -Jack Straw

Monday 25 September

Environment and transport - John Prescott

Economy - Gordon Brown

Tuesday 26 September

Britain in the World - Robin Cook

Prime Minister Tony Blair's speech

Wednesday 27 September

Education and Employment - David Blunkett

Health - Alan Milburn

Thursday 28 September

Trade and industry - Stephen Byers

Culture, Media and Sport - Chris Smith

Closing address by John Prescott

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