Blair will name date of his departure next week

Britain: Tony Blair celebrated 10 years in Downing Street yesterday by confirming that he will make his long-awaited resignation…

Britain:Tony Blair celebrated 10 years in Downing Street yesterday by confirming that he will make his long-awaited resignation statement next week.

While entering the history books as Labour's first leader to serve an uninterrupted decade in power, Mr Blair also said he expected "in all probability" that Chancellor Gordon Brown would succeed him within weeks.

In a relaxed breakfast-time interview on GMTV, Mr Blair said it had been "an honour and a privilege to be prime minister", adding that it was right "that a fresh team takes over now".

Meanwhile, the man increasingly certain to head that team, Mr Brown, lavished praise on Mr Blair, describing him as his "oldest friend in politics" and declaring that, under Mr Blair's leadership, "New Labour has been built to last".

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The two men obviously hoped that the anniversary glow might help draw some of the sting of threatened heavy losses in tomorrow's council elections in England and the devolved contests in Scotland and Wales.

Despite renewed predictions that Mr Blair will finally endorse Mr Brown's leadership campaign when he stands down next week, however, Blairite sources said that - by confirming his intentions in advance - Mr Blair was signalling it was not his intention to take "the hit" for tomorrow's predicted defeats.

If the opinion polls are correct, Labour is heading for its first defeat in Mr Brown's Scottish power base in more than 50 years. Both Mr Blair's trip to Belfast to witness the restoration of devolution on Tuesday - and his subsequent resignation statement - could be attended by protracted negotiations between the Scottish National Party and the Liberal Democrats over the creation of a new coalition at Holyrood.

On the campaign trail in Scotland yesterday Mr Blair again came close to endorsing Mr Brown, telling party workers: "In all probability a Scot will become prime minister of the United Kingdom, someone who has built our economy into one of the strongest in the world, and who, as I have said many times before, would make a great prime minister of Britain."

This sense of bowing to the inevitable was heightened when EU trade commissioner and Blair ally Peter Mandelson predicted that the chancellor would claim the prize. However the distinct lack of Blairite enthusiasm for a Brown premiership was evident in the words employed by Mr Mandelson, who famously incurred Mr Brown's wrath by backing Mr Blair to succeed the late John Smith in 1994.

"In all probability, Gordon Brown will follow Tony Blair. He will now have been able to fulfil his ambition and his desire to lead the party and be prime minister," he said.

Home secretary John Reid has not yet ruled out the possibility of a leadership bid. But he finds himself embroiled in controversy over MI5's handling of intelligence in the aftermath of the terror trial that ended on Monday. There are also serious doubts as to whether he, or his predecessor, Charles Clarke, could secure the backing of the 44 MPs necessary to get their names on the ballot paper.

Former environment secretary Michael Meacher and backbencher John McDonnell are still hoping one or other of them can mount a challenge from the left.

Without a challenge Mr Brown faces the task of appearing alone on the hustings to talk about his philosophy and vision while awaiting the completion of Labour's six or seven-week contest to elect a successor to deputy leader John Prescott. The new Labour leader is not likely to be confirmed, along with his deputy, until a special party conference on June 30th or July 1st.

Scenting the chance to complicate Mr Brown's likely premiership with a transformed political map of Britain, meanwhile, the Conservatives and Liberal Democrats maintained their electoral assault yesterday.

Tory leader David Cameron said Mr Blair would be remembered as "a successful party leader but not as a good prime minister". Lib Dem leader Sir Menzies Campbell said Mr Blair's time in office had started with great hope but ended in disappointment. Accusing Mr Blair of "squeezing the values out of British politics", Sir Menzies also declared that "Iraq will follow him into retirement".