TONY Blair holds the keys to 10 Downing Street for an historic third successive time.

But on a rollercoaster night of high drama in Kent, his victory was something of a bitter-sweet one.

Labour is on course for an overall majority of 66, down substantially from the 167-majority it held in 2001. And it has returned to power with the smallest share of the vote on record - a little over 36 per cent.

Across Kent, it proved to be an extraordinary night which saw a clutch of nerve-jangling recounts in key marginals. By the end of the night, Labour defied expectations by hanging on to seven of its eight seats, losing only the north Kent seat of Gravesham, where pensions minister Chris Pond was ousted.

Early in the evening, it had seemed Labour was on the brink of losing every single seat in Kent.

A clearly chastened Mr Blair said he recognised it was clear that “the British people wanted to return a Labour government but with a reduced majority”.

The party had to respond “sensibly and wisely and responsibly” to the result and “focus on the things that matter” such as the NHS, jobs and law and order, he said.

He acknowledged the adverse impact the war had on Labour’s fortunes.

“I know too that Iraq has been a divisive issue in this country but I hope now that we can unite again and look to the future - there and here. I know there are lots of lessons to learn but I do feel very proud of the fact that we have managed that historic third term victory.”

Labour saw its share of the vote fall from around 41 per cent to 36 per cent - a record low.

For the Conservatives, it was a night of mixed fortunes. The party improved its performance nationally and succeeded in making vital gains in some parts of the country. But it failed to capture key target seats in Kent, thwarting its prospects of holding the balance of power. But its leader Michael Howard saluted his party’s performance, saying he was proud of the campaign it had fought. Speaking directly after the result was announced in his Folkestone and Hythe constituency, he said:

“For the Conservative party, what has happened in this election marks a significant step forward in our recovery. I am proud of the campaign we have fought and have sent a message to Mr Blair.”

Conceding defeat, he added: “I congratulate Mr Blair on his victory. I believe he now has a chance to deliver on the things that really matter to the people of our country. If he does deliver, he will have my support. The time has come for action and not talk from him.”

For the Liberal Democrats, the results suggested that its “decapitation” strategy in which it targeted a series of top Tories in marginal seats had failed. However, it did succeed in making gains at the expense of Labour, suggesting that it had capitalised on a strong anti-war sentiment, particularly in London.

Leader Charles Kennedy, who saw his party gain 12 seats, was moved to declare: “The era of three-party politics right across the UK is now with us. I think it’s a healthy development and I think that what we are seeing taking place in terms of the progress of the Liberal Democrats right across the land - in Scotland, Wales and right through England - is something to celebrate.”

But as bleary eyed candidates headed home, it was probably sleep rather than celebrations on the minds of the victors.