TORY leader William Hague resigned today after his party suffered a crushing election defeat.

Tony Blair secured his place in history by leading Labour to a second successive term in office with a predicted majority of 169.

There was high drama in Wyre Forest where health campaigners won a stunning victory over Labour candidate David Lock.

"People feel their issues and desires have been ridden roughshod over," said new MP Dr Richard Taylor, who secured a 17,000 majority.

"We're giving people a return to real democracy by taking note of their will and needs.

"I've never promised by getting me in they'll get things back at Kidderminster hospital. I've promised I'll fight tooth and nail for their aims and issues."

In Worcester, Labour's Mike Foster swept back into power with 21,478 votes.

But the MP's majority slipped by more than 1,600 after a poor turn-out of voters, totalling just over 62 per cent.

The delighted MP told cheering supporters that Worcester had made a very clear choice for investment in public services and economic stability.

He said he was aware Worcester people expected a "better delivery of public services" from the new government.

Devastating defeat was enough to persuade Mr Hague to quit for the good of the Conservative Party.

"We haven't been able to persuade a majority - or anything approaching a majority - we're yet the alternative Government which they need," he said.

"Nor have I been able to persuade sufficient numbers I'm their alternative Prime Minister.

"It's the over-riding duty of our party to be not only effective in Parliament and rigorous in campaigning, but to present a leadership with the strongest possible credibility and appeal.

"In achieving that objective, no man or woman is indispensable and no individual is more important than the party - and thereby the democratic health of our country.

"I believe strongly and passionately in everything I've fought for, but it's also vital for leaders to listen and parties to change."

He will step down when a new leader has been selected.

Mr Blair told a cheering crowd at the party's Millbank HQ: "Our mandate is to carry on the work we have started. It's indeed a night of history for our party."

The Tories failed to make any significant inroads into Mr Blair's massive majority - which stood at 179 before polling day and the Liberal Democrats also enjoyed a good night, making further gains.

Labour was expected to secure 414 seats, compared with 167 for the Conservatives, 52 for the Lib Dems and 26 for other parties.

Mr Blair was expected to announce his new cabinet later today.