4am: Blunkett - Labour must 'reconnect' with voters

He said it was clear that the Conservatives would have a "substantial number of seats over Labour" but the result had not been as bad as some commentators had predicted.

The Labour Party now needed to "reconnect" with voters who have deserted it, he said, but blamed the result on the global economic crisis.

Mr Blunkett, speaking at his General Election count in Sheffield said: "It's entirely up to the Prime Minister, it's not for me to concede whether we have lost the election outright.

"But what is clear to me is that the Conservatives will have a substantial number of seats over Labour."

With Mr Brown's leadership in jeopardy in the event of a Tory win Mr Blunkett said: "What we do from later this morning is a moot point in terms of how we proceed.

"But at the moment we are just rejoicing in the fact that we haven't had the worst defeat that some people were predicting four weeks ago.

"It's bad, and it's very bad for the electorate and the future of a city like Sheffield, but we are in there fighting.

"We have the opportunity to renew our connection with the electorate, to lift our aspirations, to, in some cases, reconnect.

"And to do that at the same time as fighting the battle inside and campaigning outside Parliament for what we stand for and to link that with those who are prepared to join us.

"So whilst I'm not keen on or advocating a direct alliance with the Liberal Democrats I think there will be many issues on which we can join just cause to protect the people we care about and to modify Conservative Party policy."

He added: "It's a difficult night for all of us but in a democracy you don't just win you also sometimes have to concede defeat.

"That's the essence of a living democracy and it involves us being mature in how we handle that and being prepared to rebuild and fight back."

Mr Blunkett hit out at Labour MPs who had undermined Mr Brown's leadership.

"I think we owe Gordon Brown a deep debt of gratitude for the 10 years as chancellor and the three years as Prime Minister, latterly through the most difficult period outside wartime since the 1930s.

"He has handled that internationally, where he has got far more credit and renown than he has domestically here at home, with great aplomb and with great, inspirational leadership.

"Whatever happens over the next 72 hours no one can take that away from Gordon Brown, who I've supported, despite the fact that I was seen as a very profound supporter of Tony Blair, I've supported Gordon Brown better than most of the people who wanted him to replace Tony.

"I have done so because I'm proud of what Gordon Brown has achieved and I believe he has been a substantial contributor to a phenomenal three-term Labour government."

Asked what had caused the collapse in Labour support, he said: "In a global meltdown, where people are fearful of their jobs, they're fearful of the future, it's not surprising that they turn on the incumbent government."