He will leave behind him a bankrupt party and a political mess for Gordon Brown, who faces an uphill battle to restore Labour’s tarnished fortunes. <\/p>\n
This morning the Chancellor was contemplating the political wreckage left by the final round of national elections on Mr Blair’s watch. <\/p>\n
Voters turned their backs on Labour and delivered its worst election performance in 35 years. <\/p>\n
The Tories claimed they were on course to win 600 seats, with much needed gains in the North. <\/p>\n
Early projections gave them 41 per cent of the national vote, bringing David Cameron within reach of a general election victory. <\/p>\n
By 6.00am it was clear that Labour had avoided a national meltdown, the Conservatives had gained 300 seats, while Labour had lost 150 seats and the Liberal Democrats an estimated 100 seats. <\/p>\n
Labour is still set to record its lowest number of councillors since 1973. The bad night triggered calls for a fundamental review of the party’s direction. <\/p>\n
Deputy leadership candidate Jon Cruddas said: "This must act as a wake up call for Labour." <\/p>\n
Only last month Mr Blair appealed to voters not to harm Labour by giving him "a kicking one last time on my way out of the door". <\/p>\n
Details of his money-making exit strategy emerged yesterday as sources reported that he intends to leave the Commons for good at the end of July, bringing his Commons career to a close just weeks after he stands down as Prime Minister. <\/p>\n
His departure just half-way through a Parliament would make him the first former premier since the war to abandon the Commons and trigger a by-election. <\/p>\n
Sources claimed Mr Blair and his wife Cherie are eager to cash in on their fame, and do not want to have to make their earnings public. <\/p>\n
Resigning as the MP for Sedgefield would relieve him of the obligation to record details of his earnings in the Register of Members’ Interests. <\/p>\n
Mr Blair has been criticised in the past for failing to record details of his free holidays and other perks. <\/p>\n
Experts predict that he will easily make more money than Bill Clinton or John Major on the back of book deals – his memoirs could fetch £8million – speaking tours, property investments and fees from high-profile companies that he has ruthlessly courted. <\/p>\n
Mrs Blair is also expected to pocket around £2.5million a year from speeches. <\/p>\n
As a former Prime Minister, Mr Blair will get an immediate pension worth £117,500 a year. The Blairs will also enjoy a £90,000 a year taxpayer-funded "public service" allowance to help them cope with life after Number Ten. <\/p>\n
The tax-free allowance can be claimed every year until Mr Blair dies. <\/p>\n
He is also entitled to free telephone calls, stationery, an official car and driver and Special Branch protection worth around £1.5million a year. <\/p>\n
Sources say Mr Blair will stand down as an MP just before the House rises for the summer recess, with July 23 earmarked as the preferred date. <\/p>\n
Yesterday Downing Street fuelled speculation about Mr Blair’s future by refusing to deny that he will quit as an MP before the General Election, expected in 2009. <\/p>\n
His spokesman said Mr Blair had not yet made a decision about his political future after he leaves office, probably on July 2. "He very firmly remains MP for Sedgefield and proud of it," he said. <\/p>\n
Cherie Blair is reported to have told friends: "Now is the time for us to go and make some money. There is no way he is ever going to serve under Gordon Brown, even as a backbencher." <\/p>\n
As details of Mr Blair’s escape plan seeped out, there was surprise among some Labour MPs that he was "deserting" the party. <\/p>\n
There was speculation that some of his die-hard allies, including Alan Milburn, Stephen Byers and John Reid, are planning to leave the Commons at the same time. <\/p>\n
A source said: "They have no future under Gordon Brown, so they reckon they could quit together and trigger a by-election "Super-Thursday" to annoy him." <\/p>\n
Mr Blair will tell his party at his Sedgefield constituency next Thursday that he is resigning as Labour leader, triggering a process to confirm Mr Brown as his successor. <\/p>\n
The outcome is due to be announced on June 30. <\/p>\n
Rumours that Mr Blair might quit as an MP have been denied until now, but Labour officials are now openly preparing for a byelection. <\/p>\n
Would-be MPs are already jockeying for a plum seat that Mr Blair has held for 24 years. <\/p>\n
He is widely expected to embark on a lucrative lecture tour of the U.S. when he leaves Downing Street. <\/p>\n
Wes Neff, the boss of a prominent New York speakers’ agency, said: "The big names at the moment are Clinton, Rudy Giuliani and Colin Powell but all these have been in the market place for three or four years." <\/p>\n