Tony Blair insists he backs Ed Miliband

Mr Blair told the Economist the election could be one “in which a traditional left-wing party competes with a traditional right-wing party, with the traditional result”.

Asked if he meant a Conservative win, Mr Blair replied: “Yes, that is what happens.”

The former Labour leader, who was prime minister from 1997 to 2007, told the magazine: “I am still very much New Labour and Ed would not describe himself in that way, so there is obviously a difference there.

“I am convinced the Labour Party succeeds best when it is in the centre ground.”

While Mr Miliband has backed leftwing policies like a freeze on energy prices and the reinstatement of the 50p top rate of income tax, Mr Blair stressed the importance of “not alienating large parts of business”.

I fully support Ed and my party and expect a Labour victory in the election Tony Blair

After the interview was widely reported as a prediction that Mr Miliband would lose the next election, Mr Blair said his comments had been “misinterpreted” and said: “I fully support Ed and my party and expect a Labour victory in the election.”

Paul Kenny, general secretary of the GMB union, said: “Tony Blair is now a very wealthy person sitting on top of the pile and is disconnected from the lives of ordinary people.

“Having lost touch with ordinary people it is hardly surprising that he labels promising a decent living wage, homes for rent, decent rights at work and making the wealthy pay their fair share of taxes to be vote-losing policies.

“It is sad and disappointing that a very wealthy man like Tony Blair, given his background in the Labour movement, opposes measures to close the widening and now unacceptable inequality gap between those at the top and the rest in our society.”

In a new year message to voters, Mr Miliband said: “This is the season for new beginnings and hopes for the future. And Britain is ready for a new beginning.

“Because I don’t have to tell you that, all over our country today, there are people working harder and harder, but standing still: families struggling with bills that are growing faster than their wages; young people taking on mountains of debt to get a proper education, only to find themselves with no job at the other end, and an NHS where people are waiting longer and longer to get the care they need.

“It doesn’t have to be this way. As this new year dawns, we have the chance to change direction.”