Battling Tony Blair declared his Government was getting it right as he came out fighting for his second face-to-face clash with Tory leader William Hague in 24 hours.

The Prime Minister, presenting Labour's 'end of term report' to the Commons, said they'd met a lot of their promises - but admitted there was more to do.

Britain's public services are suffering from 'chronic under-investment', he said as he launched the Government's third annual report.

Britain's public services are suffering from 'chronic under-investment', he said as he launched the Government's third annual report.

But Mr Blair indicated there would be a significant cash injection for schools, hospitals and transport when the spending review is announced next week.

A day after his fighting performance at Prime Minister's Questions, a stronger-looking Mr Blair told MPs: 'If we want opportunity and security for all in a world of change, we have now to invest in our essential infrastructure and in our public services.

'The priorities remain education, education, education and our response will be investment, investment, investment, guaranteed.'

The Prime Minister broke with tradition by ousting Cabinet Office Minister Mo Mowlam and presenting the report himself.

The annual report highlights 'achievements' across the entire spectrum of Government business - the economy, health, social security, education and transport.

Unemployment and inflation were down and one million new jobs have been created, it said.

The average family's standard of living has risen by about 10 per cent - or £2,000 a year - in real terms since May 1997.

But Mr Blair admitted: 'There is a lot done. But a lot more needs to be done and this Government will do it.'

There must now be sustained falls in NHS outpatient waiting times and substantial extra investment in transport, he told MPs.

Conservative leader William Hague ridiculed the report as 'yet another gimmick from a Government of gimmicks'.

It ranged from the 'banal' to the 'completely untrue', he claimed, prompting appreciative laughter from Tory MPs.

The Government has halved the print run from 100,000 to 50,000 after disappointing sales of the second annual report last year.

Mr Hague said: 'How are we to believe any of this rubbish? No wonder they only sold 49,000 copies last year and 41,000 of them were bought by the Government.

'It's not exactly Harry Potter is it, although it requires as much imagination to believe it.'

The publication of the glossy report, which costs £2.99 a copy from Tesco and WH Smith, and is available online at www.annualreport.gov.uk, confirms that General Election campaigning is well under way.

Mr Blair is cranking up the number of personal appearances he makes in public and in the Commons, as Parliament-watchers predicted he would go to the country next spring.

You can read the full transcript of the speech here. Use back button to return.

Read more about the Annual Report here. Use back button to return.