UK's Blair to stay on for at least another year-report

LONDON, Aug 6 (Reuters) Tony Blair has told colleagues he plans to stay on as British prime minister for at least another year, defying calls from members of his own party to step down sooner, a newspaper reported today.

Blair, 53, led the Labour Party to a record third successive election victory only last year.

But his popularity has slumped amid government scandals over sex, incompetence and alleged sleaze, fuelling calls from some Labour legislators for him to set a timetable to leave office after he pledged not to stand at the next election.

Blair's refusal to call for an immediate ceasefire in the war between Israel and Hizbollah guerrillas in Lebanon has deepened divisions in Labour, further weakening his authority.

However, The Sunday Telegraph said Blair had no intention of giving up the reins to finance minister Gordon Brown, his expected successor, any time soon.

''He is talking about at least another year,'' the newspaper quoted an unidentified ''close colleague'' as saying. ''He doesn't intend his current summer holiday to be the last one he takes as prime minister.'' The newspaper said Blair's decision could lead to ''a new war'' with Brown, who has made no secret of his ambition to take over as party leader and prime minister.

The report said Brown and a large number of Labour members of parliament wanted Blair to hand over power shortly after his 10th anniversary in power next May.

But it said some Labour politicians believed Blair had set his sights on surpassing the 11-1/2 year tenure of Margaret Thatcher, the longest-serving British prime minister of the last 100 years. That would take him to November 2008.

Any attempt by Blair to go on much beyond next May would risk provoking a leadership challenge from Brown and a full-scale attempt by Labour legislators to remove him, the newspaper said.

It said Blair had returned from a five-day trip to the United States last week feeling ''rejuvenated'' and believing he still has a major role to play domestically and internationally.

On the trip, Blair held talks on the Middle East with US President George W Bush at the White House and had praise heaped on him by California Governor Arnold Schwarzenegger and former US President Bill Clinton.

The Sunday Telegraph said Blair was ready for a fresh fight with Labour critics by seeking to push through a fresh round of health and education reforms.

Under pressure to set out a transition timetable, Blair promised in May to give his successor ample time to settle in before the next election, expected in 2009.

But last month Blair gave a strong hint he had no intention of stepping down before next year, telling an interviewer at the Group of Eight summit in Russia he looked forward to next year's meeting of the world's rich powers.

REUTERS DH KP0718