Blair: Labour on verge of victory

Blair and wife Cherie arrive to hear the result in his Sedgefield constituency

SEDGEFIELD, England -- Prime Minister Tony Blair says his Labour Party is heading for an historic landslide victory in the UK election.

Exit polls and early results point to a resounding Labour triumph in the poll, with the main opposition Conservatives facing a disappointing result.

Blair, speaking as he was comfortably re-elected to his Sedgefield seat, in north east England, said: "I would like to thank the British people.

"There is no greater honour than to serve you as Prime Minister and you have given us tonight a historic moment for the Labour Party.

"For tonight the Labour Party for the first time in our 100 year history looks as if we may be on the verge of a second successive term of office.

"That is an extraordinary thing -- it's what we have always worked for. We have worked for it not simply to be in office itself, but because we always knew that to complete the work we began it would take more than one term of office to do so."

Liberal Democrat leader Charles Kennedy congratulated Blair on winning the election.

Earlier Deputy Prime Minister John Prescott said voters had given Labour "an overwhelming mandate," while Home Secretary Jack Straw said the party had won "a thumping majority."

Finance minister Gordon Brown said: "I believe that the scale of our victory and the wide margin between ourselves and our opponents reflects not just that we have won the battle of votes but the battle of ideas."

If exit polls prove accurate, it would mean a second consecutive landslide election triumph for Labour, which has never before remained in power for two full terms.

There was an early disappointment for the Conservative Party as it failed to win the seat of Torbay in southern England, which had been a key target.

Early estimates put the number of people voting as the lowest since 1918.

Within two hours of the polls closing, it appeared that the turnout compared with 1997 -- which had the lowest turnout since World War II -- was down by around 10 percent.

Projections from a MORI exit poll for ITN and early results forecast Blair would have a majority of 173 in the House of Commons, the UK's main legislative body. A BBC/NOP survey predicted a Labour majority of at least 160.

On the BBC, the prediction was that Labour had taken 44 percent of the vote, Conservatives 32 percent and Liberal Democrats 17 percent.

Blair's official spokesman, Alastair Campbell, told the Press Association: "If the exit polls are right it's excellent news. It shows we have fought a positive campaign and people have been willing to endorse our record.

"But like everybody else, we are going to have to wait and see the results as they come in."

A Labour victory will be an endorsement of Blair's campaign, which focused on improving public services, notably health and education.

But it reflects a huge snub for the Conservative Party, which was accused by Labour of running a one-issue campaign based on the European currency and highlighted by Tory leader William Hague's oft repeated 'Save The Pound' slogan.

The Liberal Democrats' campaign focused on increasing taxes to pay for more spending on health and education.

The severity of the defeat will have a bearing on the future of Hague as party leader.

Within 30 minutes of the polls closing, shadow chancellor Michael Portillo -- one of several high-profile Tories tipped as potential leadership contenders -- warned against any "precipitate action."

Portillo told the BBC he hoped Hague would carry on as the party leader whatever the result.

"I would very much hope that whatever happens he will continue as leader," he said.

Hague: Predictions show him heading for defeat

Other potential stalkers for leadership of the Conservatives also gave their support to Hague.

Ex-Chancellor Kenneth Clarke, said: "William will carry on in his job is my personal prediction. But I don't think it's sensible at all to talk about these things."

Shadow Home Secretary Ann Widdecombe, praised Hague. She said: "As far as I'm concerned, William has been an excellent leader. He's a staying leader."

There was support too from former Cabinet minister Lord Tebbit, who urged Hague to stay on, whatever the outcome.

"I certainly don't think that he should walk away from it either now or tomorrow morning," he said.

"The whole party needs to sit down and think about the election, think about the next election too.

"There's a very good chance the party will decide they would rather like to keep William."

Labour came to power in the UK in 1997, winning a 179-seat majority with 43 percent of the vote, with the Conservatives taking 31 percent.

Blair, 48, has been Labour leader since 1994, taking up the position following the death of John Smith. He immediately began overhauling the centre-left party and re-branded it as "New" Labour.

Elections are also taking place for 45 councils, 34 counties and 11 all-purpose unitary authorities in England and Wales.