Reid says Labour must continue renewal after Blair

LONDON, Jan 4 (Reuters) The Labour Party must continue to renew itself in the centre ground of British politics once Tony Blair steps down as premier, a potential challenger for his post said today.

Home Secretary John Reid, who has yet to rule himself out of standing for the leadership, said the party will win a fourth straight term if it remains a modernising ''New Labour'' force that addresses the aspirations of working people.

''Though Tony may be stepping down, the underlying analysis and philosophy of New Labour is one shared by all of us in government and will continue undimmed,'' Reid told a gathering of Labour supporters.

''New Labour does not and will not start and end with Tony Blair,'' he added.

As the party prepares for a leadership change, Reid said Labour faced its most challenging time in a decade and a half, since it was forced to revamp itself after its 1992 election defeat.

Blair's decision to back the US-led war on Iraq has lost Labour many supporters and the opposition Conservative Party is reenergised under new leader David Cameron.

Chancellor Gordon Brown is tipped to succeed Blair when he resigns this year. Blair is expected to go by July.

But speculation remains that Reid could stand against Brown since he has repeatedly refused to rule himself out.

The Conservatives claim Labour will veer back to its leftist roots once Blair leaves, a charge Reid rejected.

''If we remain true, as we intend to, to the direction of a modern, New Labour Party, we will secure another term in office beyond this one,'' Reid said, challenging Labour's critics.

''The Tories (Conservatives) will try to argue that Tony Blair equals New Labour. They will say that when Tony Blair goes New Labour goes with him. That is not the case and we must show that it is not true,'' he added.

Reid said the ''New Labour'' project -- under which Labour modernised itself to win a landslide in 1997 -- was not just the product of one or two people ''but of the efforts and energies of many people over decades''.

''It is obvious to me we will win or lose the next election by our own hand,'' he added.

REUTERS DKA VV1831