Last weekend's local government elections showed the mood of the country is changing and National can be defeated, Labour's president Andrew Little told the party's annual conference today.
"The people have said more of the same is not enough," he said.
"There is a sense of unease across the country."
Mr Little said the economy had slowed to a crawl, and the Government did not have policies that would create a single extra job.
In a strong and well-received speech, he said Labour could win next year's election and take at least seven electorate seats from National.
Mr Little is standing in New Plymouth and said he would stand down early next year.
He urged the conference to "get ready for the battle of 2011", and said party leader Phil Goff was the man to lead Labour to victory.