Labour will begin the battle for May's crucial local elections when it visits Birmingham for its Spring Conference starting on Friday.

Gordon Brown, the Prime Minister, and members of his cabinet will set out the themes Labour plans focus on, in the run-up to polls on May 1. The vote will be a key test for Mr Brown as the first national election he has faced since taking over from his predecessor, Tony Blair.

The conference, to be held at the International Convention Centre in central Birmingham over the weekend, also marks an important opportunity for the city. Labour has never held its main annual conference in the city, but may do so in the future if the Spring Conference goes well.

The party has begin holding annual conferences in Manchester - rather than traditional venues such as Blackpool - after a successful Spring conference there in 2004.

A party source said: "We know Birmingham would welcome the annual conference and in the past we have held them in places where we have already held spring conferences."

It means the leaders of Britain's both major parties are due to be in Birmingham over the weekend.

Conservative leader David Cameron will be speaking at The Birmingham Post's Gala Dinner, to celebrate the newspaper's 150th anniversary, on Friday evening.

Labour's event is expected to focus on themes including local government, women's issues, Europe and promoting diversity.

A party source said: "We will focus on families and show that Labour shares the priorities of Britain's hard-working families on health, education and the economy.

"The speeches will set out the themes which will take us through to May's local elections."

The Prime Minister is expected to emphasise the importance of people and the state working in partnership to tackle issues such as globalisation, terrorism and environmental challenges.

As well as Mr Brown, speakers are expected to include Ed Miliband, the Foreign Secretary, Alan Johnson, the Health Secretary, and Harriet Harman, the Leader of the House and Labour's Deputy Leader.

May's local elections will see a third of seats contested in councils including Birmingham, Coventry, Dudley, Sandwell, Solihull, Walsall and Wolverhampton.

Mr Brown became Prime Minister last June, but has never faced a major election in his role as Labour leader.

He has faced a difficult period since ruling out an early General Election in October, following intense speculation.

Recent opinion polls have placed the Tories 11 points ahead of Labour, suggesting the Government's nationalisation of Northern Rock has boosted the Opposition. But the May elections will also be a test for Nick Clegg, the Liberal Democrat leader appointed in December last year.

And Conservative leader David Cameron will be under pressure to achieve a result good enough to suggest he has a real chance of winning a general election.

The Spring Conference is expected to attract 4,000 people and add £4 million to the local economy as bars, restaurants and hotels cater to delegates.

Labour delegates will also learn more about the city. The party's website promises: "Visit Birmingham and you'll discover a city rejoicing in a new identity."

However, the party's annual conference would be a much bigger event. The Conservatives are holding their own annual event in Birmingham this year, and will return in 2010.

Their two conferences are expected to bring in more than £40 million.