Blair backs Brown to lead Labour

For the first time, the Prime Minister offered an explicit endorsement of the Chancellor's ability to steer the party towards a fourth consecutive term in office.

Writing in the News of the World, Mr Blair acknowledged Labour has a fight on its hands at the next election but argued that the Tories' policies are a "not thought through".

He said: "Gordon Brown by contrast is completely thought through. He has steered our economy from one of boom and bust to one of the best in the world.

"He didn't do it by choosing the easy way. He did it by sound judgment, holding his nerve and putting the long-term interests of Britain first. At general election time, that is still the route to victory."

Mr Blair's endorsement came as it appeared Mr Brown would face no heavyweight challenger for the leadership. Former home secretary Charles Clarke has ruled himself out of the contest saying there was "no appetite" for a potentially-divisive bid.

John Reid, Mr Clarke's successor at the Home Office, is the only Cabinet figure keeping his options open until Mr Blair announces his resignation plans this week.

In his newspaper article, the premier admitted the results of Thursday's elections - in which Labour lost almost 500 council seats and was overtaken by Nationalists in Scotland - cannot be brushed aside.

He said: "We have to listen. We have to take account. But in fact with a general election at least two years away, it's all to play for. We can come back. We have to show confidence and belief and above all a determination to fight."

Mr Blair said the predicted "catastrophe" had failed to materialise with Labour's Holyrood defeat to the Scottish National Party by 47 seats to 46. He added: "The idea that this was a vote for independence is nonsense. Two thirds of the votes cast were for pro-UK parties."