Labour won the predicted third consecutive general election victory yesterday, but with a greatly reduced majority. It appears to have lost votes largely to the Liberal Democrats, in an unwinding of the tactical anti-Conservative voting of recent elections. The result is a severe blow to Tony Blair's leadership, but offers scant comfort to the Conservatives.

Early indications were pointing to a working majority for a third Labour term, but one well down on 2001. Mr Blair's personal popularity has sunk in the aftermath of the Iraq invasion and the constant focus on the issue at the end of the campaign has taken its toll.