The Labour Party, trailing in the polls before a May 6 election, will try to regain the initiative on Monday by setting out plans to boost industry, reform scandal-hit politics and shake up public services, party sources said.

Prime Minister Gordon Brown will unveil Labour's platform for what would be an unprecedented fourth consecutive term in office for the party.

The party says its manifesto will contain no major new spending commitments, recognising the need for Britain to tighten its belt to reduce a budget deficit forecast to exceed 11 percent of gross domestic product this fiscal year.

Labour says the manifesto will be pro-business but investors will be looking for details of what one party source said would be a pledge to give government more power to scrutinise foreign takeovers of British companies -- a significant change for a country until now wide open to takeovers.

The source said however the proposed change would not have prevented the controversial takeover of chocolate maker Cadbury by U.S. company Kraft.

Labour, which will unveil its manifesto in the West Midlands, a key election battleground, says its priority is to secure the economic recovery after the worst recession since World War Two.

It plans to halve the deficit within four years but says plans by the Conservatives for faster, deeper cuts could derail the recovery. The centre-right Conservatives say failure to tackle the deficit could wreck the recovery.

TAX QUARREL

The Conservatives, vying to end 13 years of Labour rule, are ahead in the polls but not by enough to be sure of an overall majority in parliament. Investors fear a "hung parliament" would make decisive action to tackle the deficit less likely.

The first week of campaigning was dominated by a row over Labour's plan to raise the National Insurance payroll tax. The Conservatives won backing from dozens of leading business executives for their plan to partly reverse the planned rise.

The Conservatives unveil their election manifesto on Tuesday.

With the financial services sector on which Britain previously relied for growth weakened by the financial crisis, Labour is looking to "re-balance" the economy by fostering industry, particularly environmentally friendly technology.

"The jobs and growth of the future must come from growing more and better businesses," Energy Secretary Ed Miliband, in charge of compiling Labour's manifesto, said on Sunday.

Labour will set a goal for business to create a million more skilled jobs. The party's manifesto will include plans for 70,000 apprenticeships as well as previously announced plans for new high-speed rail links, a "green" investment bank and broadband access for all, a party source said.

Brown has already said the party will pledge to hold the basic income tax rate at 20 percent and crack down on bankers' bonuses judged to reward excessive risk-taking.

The manifesto will include radical proposals for reforming public services which would allow poorly performing schools, hospitals and even police forces to be taken over by strong performers in their sectors.

With public anger running high over an expenses scandal in which members of parliament claimed public funds for items such as a duck house and dog food, Labour will set out plans to give voters a right to fire corrupt members of parliament.