Beleagured PM Blair urges party to "have faith"

LONDON, Jul 1 (Reuters) Beleaguered British Prime Minister Tony Blair urged supporters to ''hold firm'' today after electoral set-backs this week shook his ruling Labour Party.

Blair, under intense pressure to set a date for his departure, attempted to rally his party after it failed to win a by-election in a traditional Labour stronghold and came fourth in a second poll in London.

Sex and sleaze scandals and public fears over crime and immigration have eroded both Blair's popularity and his party's standing in the polls.

After months of negative headlines and opposition attacks, Blair said the party faced ''tough challenges'' ahead and urged Labour members to ''have faith''.

''What sustains a government at this point is self-belief,'' he said in a speech in London. ''We should have confidence in our record in government.

''This third term is unknown territory for us. The ground is bigger, more rocky and harder to navigate. This is the time therefore to hold firm,'' he urged.

Blair's call for the party to renew itself came after a newspaper poll yesterday put Labour six points behind the main opposition Conservative Party.

The Daily Telegraph survey showed Conservative leader David Cameron was more popular than Blair.

Since winning a third consecutive election in May 2005 in the face of protests over the Iraq war, Blair has seen his once impregnable popularity slump.

He said before the election that he would not seek a fourth term in office, a move that has sparked constant speculation over when he will step down.

Some within his party think he has become a lame duck leader and should set a date for when he hands over to his most likely successor, finance minister Gordon Brown.

Blair attempted to shrug off recent criticism by stressing Labour should have confidence in its handling of the economy and public healthcare.

REUTERS SHB HT1745