LONDON, May 10: After almost nine months of ambiguity, Prime Minister Tony Blair, who had led the Labour Party to three smashing victories since 1997, announced on Thursday he would stand down as prime minister on 27 June, almost two years before the end of his third term.

He made the announcement in a speech to party activists in his Sedgefield constituency, after earlier briefing the cabinet on his plans.

Gordon Brown, Chancellor of the Exchequer, is all but ready to enter 10 Downing Street in the first week of July.

Blair had given the UK what is known as the best economic years of its post-World War II life.

Mr Blair and his chancellor are known to have redefined labour’s philosophy to make it friendlier to market economy and globalisation without losing its socialistic underpinning.

But critics have accused the two of obliterating the differences between the Labour and Conservative philosophies.

Blair’s government had kept spending on a leash, but rationalised upward taxation while introducing the concept of using resources for maximum socio-economic gains rather than focusing only on social welfare.

Despite Blair’s successes on the economic front and on health and education sectors, he lost the confidence of his party and perhaps a good part of the nation when he refused to de-link his foreign policy from that of President Bush’s.