Britain's Blair foresees more succession fever

MANCHESTER, England, Sep 28 (Reuters) Britain's Tony Blair today predicted there would be unrelenting speculation on who will succeed him as the ruling Labour Party ended its last rally of his premiership under a cloud of uncertainty.

Labour faces months of public and private tussles over the leadership after Mr Blair was recently forced to say he would go within a year to quell a party revolt but failed to name a date.

''I know there's been a stream of speculation all week and all that will continue,'' Mr Blair said in northern England.

''But at this point in time my priority has got to be the country, making the changes that make it better,'' he added.

Finance minister Gordon Brown, 55, cemented his credentials as favourite to succeed Mr Blair at the rally with a surefooted speech that won him the public backing of a string of ministers.

But Mr Blair's widely-admired address exposed his long-standing rival's lack of charisma and Brown risks seeing his dream shattered if the public fails to warm to him in opinion polls.

Other heavyweight ministers may stand against him.

Mr Blair said Labour had emerged stronger from the conference.

Indeed, there was none of the public blood-letting that marked the runup to the five-day gathering when a handful of junior government members urged Blair to go and resigned.

Some Mr Blair allies blame an impatient Brown camp for orchestrating a coup. The tense and at times hostile relationship between them has pervaded this Labour goverment.

But feverish speculation about the succession and sniping between rival Labour factions continued behind the scenes.

DANGERS OF DISUNITY Labour parliamentarians are worried the party could suffer in Scottish parliament, Welsh assembly and English local council elections in May if the leadership question remains unresolved.

Many commentators think Mr Blair wants to complete ten years as prime minister in May before leaving.

Labour also fears a resurgent Conservative Party that analysts say could at least rob Labour of its overall majority in an election expected in 2009, forcing a hung parliament.

Ministers issued stark warnings of the dangers of disunity.

''You know it and I know it. Disunity destroys. And this party would never, ever forgive anyone who undermined Labour in that way,'' said Mr Blair's deputy John Prescott today.

Mr Prescott confirmed it would be his last rally as deputy, formally kicking off a race to succeed him. Serious challengers to Mr Brown have yet to come forward.

But Home Secretary (interior minister) John Reid, a Blair ally, strayed far beyond his brief in a well-received speech some commentators saw as a thinly veiled pitch for the top job.

The telegenic Mr Blair has won three straight elections but Labour's majority was slashed last year as voters registered their anger over Mr Blair's support for the US-led Iraq war and their disillusionment over the state of public services.

Despite Mr Blair's dwindling popularity, Labour knows he has been their best electoral asset. They now need a new vote-winning formula to defeat the Conservatives' youthful and energetic leader Mr David Cameron.

REUTERS BDP RK2051