TWO North-East MPs have helped launch a radical group to shift the Labour Party to the Left.

Kevan Jones (Durham North) and Vera Baird (Redcar) are among 15 backbench MPs who yesterday founded New Wave to persuade Prime Minister Tony Blair to change direction.

The group's manifesto demands a more left-wing programme at the next election.

It calls for policies to tackle inequality, curbs on the extension of market forces into schools and hospitals and an end to support for "neo-colonial US adventures", following the Iraq war.

The ideas will be fiercely resisted by Mr Blair, who believes a left-wing Labour Party can only help bring the Conservatives back to power.

However, Mr Jones insisted the group was not intended to be a means of challenging the Prime Minister to replace him.

Mr Jones said: "This is about policy, not personalities. And it's not part of all the talk about the Chancellor versus the Prime Minister.

"We need to ensure that the policies that come forward have the support of the party, so we don't have any repeat of the debacle over foundation hospitals.

"There is a tendency for policy to be made by a small number of people without reflecting the party's mainstream supporters, or party members. There is a danger of us becoming isolated."

New Wave's ten-point manifesto urges Mr Blair to strengthen ties with the trade unions and to ensure that "rampant individualism does not lead to worse solutions for all".

New Wave's launch comes on the eve of tomorrow's Queen's Speech, which will include a Bill allowing English universities to charge top-up fees - a proposal opposed by up to 140 Labour MPs.