Japan's governing Liberal Democratic party was yesterday facing the possibility of a serious electoral setback in national elections after Shinzo Abe, the prime minister, failed to shore up his sagging popularity in a keenly awaited set piece speech.

In his first policy address to parliament since he succeeded Junichiro Koizumi in September, Mr Abe pledged to give priority to education, reforming the country's pacifist constitution, implementing a new economic growth strategy and reining in public spending.