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Jeremy Corbyn says he is "convinced" his party can climb an "electoral mountain" to general election success.
Closing his party's conference in Liverpool, the Labour leader said it could build support by focusing on the "needs and aspirations of middle and lower income voters".
He also promised no "false promises" on immigration numbers, focusing instead on a new fund for high-migration areas.
And he urged colleagues to "end the trench warfare" and take on the Tories.
In his second conference speech as party leader, Mr Corbyn - who was re-elected on Saturday by an increased margin - urged supporters to prepare for an early general election.
"Let's do it, and be ready for the challenge whenever it comes," he said.
Recent months had been a "testing time" for his party, including the death of Jo Cox, the European referendum and divisions over the leadership contest "spilling over", he said.
Mr Corbyn also:
- Described anti-Semitism as an "evil", adding: "Every one of us has a responsibility to ensure that it is never allowed to fester in our society again."
- Said the "so-called free market system" had "produced grotesque inequality"
- Said Theresa May could not "walk the walk" on inequality, saying the Tories were "funded by the privileged few, for the benefit of the privileged few"
- Received a standing ovation for saying Labour would repeal the Trade Union Act
- Promised to lift borrowing restrictions on councils to allow them to build more houses
- Offered a "new deal" to businesses - investment in infrastructure in return for tax increases
- Promised a £160m "arts pupil premium" to offer children access to music, drama and dance
- Promised to suspend UK arms sales, starting with Saudi Arabia
Supporters chanted "Jez we can" as he took to the stage with a joke about his recent trouble finding a seat on board a Virgin train.
To cheers from the conference floor, Mr Corbyn paid tribute to MPs who he promoted to the shadow cabinet after mass front-bench resignations.
"They stepped up when their party and in fact their country needed them to serve," he said.
Mr Corbyn hit out at "rampant inequality" and pledged to "build a fairer Britain in a peaceful world".
He said his party had a responsibility to act like a government-in-waiting, especially given what he says is the growing prospect of Prime Minister Theresa May calling a snap election next year.
"The central task for the whole Labour Party is to rebuild trust and support to win the next general election and form the next government.
"That is the government I am determined to lead, to win power to change Britain for the better.
"But everyone knows that we will only get there if we accept the decision of the member, end the trench warfare and work together to take on the Tories.
"Anything else is a luxury that the millions of people who depend on Labour cannot afford."
Some Labour MPs have called for the party to back reforms to curb immigrantion, following the vote to leave the European Union.
Mr Corbyn said he was committed, if he becomes prime minister, to measures to help relieve some of the pressures on "hard-pressed public services" such as health, housing and education exacerbated by migrant inflows.
In 2010, the coalition government scrapped the Migrant Impact Fund set up a year earlier by its Labour predecessor - although the Conservatives promised at last year's election to introduce a mechanism for dealing with the effects of "high and unexpected volumes of immigration."
Labour will not "sow division" with "false promises" in relation to Brexit Mr Corbyn said, but "instead tackle the real issues of immigration and make the real changes that are needed".
"We will act to end the exploitation of migrant labour to undercut workers pay and conditions," he added.
"And we will ease the pressure on hard-pressed public services - services that are struggling to absorb Tory austerity cuts, in communities absorbing new populations."
Labour's alternative
Levels of funding will be linked to local authorities' needs, to be paid for in part from money raised from visa applications to enter the UK and a new levy on citizenship application fees.
Mr Corbyn has been under pressure to address the reasons why so many people in Labour heartlands in northern England - areas where UKIP has made gains in recent years - voted for Brexit.
He said the proposals he was unveiling "show the direction of change we are determined to take".
The leader's plea for unity was echoed by shadow home secretary Andy Burnham, who also confirmed he was leaving the shadow cabinet in order to contest the Greater Manchester mayoral election.
A Labour government of any kind, he said, is "a million time times better" for his constituency than the Conservatives - "and that is more likely to happen if Labour is united".
"So let us unite - let's have an end to divisive talk about deselections but, in return, let's have more respect for the democratic will of you, our members," he said.
The Leigh MP also said people who voted Brexit and were concerned about immigration were not "narrow-minded" or "xenophobic".
He criticised an "out of touch elite" for not listening to their concerns about "unlimited, unfunded, unskilled migration".
"If Labour now argues for the status quo, it will look like we have abandoned them too," he added.
Responding to Mr Corbyn's comments on immigration, Home Secretary Amber Rudd said: "All this shows is that Jeremy Corbyn wants unlimited immigration - and presides over a Labour Party that is too divided, incompetent and distracted to lead our country.
"While Labour have lurched from one disaster to another this week, we will get on with the job of building a country that works for everyone."
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