For the first time in its history, the Times backs Labour.

The newspaper's support, given in a long and almost apologetic editorial, is not enthusiastic but represents unprecedented media support for Tony Blair - the FT today backs Labour too.

But the Times's praise for Blair's willingness "to extend Thatcherite principles into areas where she was either unwilling or unable to go" will appal many in the Labour camp as Millbank tries to reassure disillusioned heartland voters.

"We feel comfortable, as never before, with the case for Labour. Mr Blair, either out of conviction or out of fear that his proposed expenditure increases will be inadequate, is likely to blend Thatcherite means with social democratic ends in a manner which will benefit public services. The electors would be best advised to let him continue what he has begun."

Supporting continued reform, the paper's editor, Peter Stothard, nevertheless warns Labour off the European single currency.

"We hope that Mr Blair has the wisdom to concentrate on the series of challenges that he has set out at home and to avoid a reckless continental adventure that could destroy both his premiership and his reputation. On that basis, and for the first time in its history, the Times offers a cautious but clear endorsement of the Labour Party in this election."