Tony Blair has acknowledged his place in history as the first-ever Labour prime minister to win a second consecutive term in government.

Tony Blair pledged to work "patiently, clearly and calmly" to achieve his manifesto pledges.

In his speech to party workers at Labour HQ in Millbank early on Friday morning he said his government should not let down the people of Britain. "It is a privilege that they have bestowed on us. Let us live up to it," he said.

He thanked party workers before telling them: "We want a society where not just a few people at the top but where everyone gets the chance to succeed." He said: "We will create that society through a party that offers this country a different choice."

Earlier, in his acceptance speech in Sedgefield he said that the voters had sent a clear message to the government.

"They agree with the direction in which we are taking the country but they want us to get on with the journey," Blair said.

The prime minister's result was not entirely good news. He won 26,110 votes, down 10 per cent on 1997 with a five per cent swing to the Conservatives.

Speaking in his constituency, Blair thanked the nation. "There is no greater honour than to serve you as prime minister and you have given us a historic moment for the Labour Party. Four years ago we were elected as a government amid some euphoria after 18 years of Conservative government," he said.

"The judgement may be more sober and the mood may be more different but this is not built in a term in office. What I believe is that this country is a better country than in 1997 and I believe in five years from now it will be a better country than it is today."

"We can have a politics in which the head and the heart are married together" he said.