Blair `arrogance' is turning off voters, says secret report Sixty point bold head on two yy

TONY BLAIR has been warned by Labour officials that his government is seen as "arrogant" by the voters as they become increasingly worried about health, education and transport.

A confidential Labour report, leaked to The Independent, warns that the party's huge lead in the opinion polls masks the fact that people are turning against the Government because they believe it is failing to deliver its 1997 general election promises. It suggests that William Hague, the Tory leader, has made a modest recovery as Mr Blair's popularity declines.

The document, The Mid-term Electorate, has been discussed by the Downing Street policy unit and provides a sobering backdrop to a special session of the Cabinet at Chequers today at which ministers will discuss long- term strategy.

Mr Blair will reflect the report's findings by ordering his ministers to concentrate on meeting the keynote pledges made in the 1997 manifesto, rather than making a rash of new commitments.

Yesterday, Mr Blair received a lukewarm response after telling the Trades Union Congress's annual conference in Brighton that Labour was "delivering for working people" and said he had no truck with charges of "betrayal".

The internal report, based on Labour's private poll, warns Mr Blair that there are "real shifts" beneath the headline voting intention figures. "The cooling of support is evident in the increasing proportion of the electorate who `score' Labour at less than 50 out of 100," it says.

Although Labour scores well when voters are asked whether the Government is "getting the fundamentals right", the document warns: "There is a drift downwards in many of the image ratings, notably on arrogance, [being] in touch and keeping promises."

Last night, one Blair aide denied that the image of "arrogance" stemmed from Mr Blair's presidential style, and said it was directed at the Government as a whole. "It's a reminder that we must remain in touch with the electorate," the aide said. One cabinet minister said: "The criticism of `arrogance' is worrying. We should take this seriously."

Since the 1997 election, Mr Blair's ratings have fallen back on trust, keeping his word, being a strong leader, being in control of the party and doing a good job. The Labour report admits that Mr Hague's personal ratings "may be slightly more encouraging" for the Tories. The number of people who think he is doing a good job is "gradually improving".

Mr Hague has also recovered some ground in his efforts to convince the voters that he is reforming his party. But his improvement appears to be mainly among Tory voters; among the electorate as a whole, he is still seen as weak and someone who has not united his party

The report's most gloomy section is on the NHS, with one in three people now thinking that Labour is not rebuilding it. "Health has crept up as the issue of most salience and has consistently rated as the most important promise for Labour to succeed. It is the defining Labour issue. But how can Labour succeed?" it asks.

Four out of five people believe education standards are being raised, but the party officials warn: "There is an undeniable trend downwards." In a setback for John Prescott, the Deputy Prime Minister, transport scores the lowest rating of any policy, with only 20 per cent of people believing that Labour is keeping its promises on the issue.

Labour is doing much better on the economy, although its ratings move inversely to interest rates, so last week's unexpected rise in rates could damage its credentials.

Although Mr Blair is trying to win public support for British membership of the single currency, the report admits that public opinion is hardening against entry. "The one area to have shifted significantly in response to the European election is attitudes to the euro," it says.

According to the report, Labour's best opportunities are in "strong leadership, direction, the future", standing for "the many, not the few" and delivering on health and education. The biggest threats are hitting problems on the economy and "non-delivery" on health and education. The Tories good areas are the economy, ambition and enterprise and "standing up for Britain". The threats are "weak leadership, division, lack of trust", past failure while in government and being seen to stand "for the few, not the many".