Jack McConnell is to be returned as Scotland's first minister after an election characterised by apathy and a few surprises.

Labour maintained its position as the largest party in the parliament - following an onslaught from Tommy Sheridan's Scottish Socialists and a bitterly fought campaign with the SNP.

John Swinney's nationalists failed to make gains in Labour's West Coast heartlands.

In what was a major blow to the nationalists, Swinney saw the number of SNP MSPs fall by five seats to just 27.

Following the loss of five seats, Labour will again need the support of the Scottish Lib Dems to form an executive in Edinburgh.

McConnell will meet with Lib Dem leader Jim Wallace this weekend to agree the terms of a coalition deal.

Labour and the nationalists came under attack, as the Tories, Greens, Scottish Socialists and independent candidates made significant gains across the country.

McConnell said: "Labour does not exist because it wants to win elections. We are here because we passionately believe that we can make Scotland better tomorrow than it is today.

"So tomorrow the work will go on. But the work must be smarter, quicker and sharper."

The SNP is still the second biggest party - making gains in Ochil, Dundee East and Aberdeen North - despite the drop in support overall.

Said party leader John Swinney: "We move on determined to learn all the lessons from this election: good and bad. There has been a clear drift from the two largest parties to smaller parties.

"And it is the SNP which has suffered the most. That presents a great challenge to the SNP - a challenge that can be met in only one possible way: first past the post victories across Scotland."

The Scottish Tories are back on the map with leader David McLetchie taking the Edinburgh Pentlands seat of Labour minister Iain Gray along with two other constituencies.

"Ever since I joined the Conservative Party at the age of 16 I have dreamed of the day I would have the opportunity to make a speech like this," said McLetchie.

"I am proud to have led this party in the last parliament; I am proud to have led this party in our campaign and I am looking forward to leading our party in the next parliament."

The Lib Dems saw a gain from Labour in Edinburgh South and returned a total of 17 MSPs.

Turnout was down on the 1999 election - below 50 per cent in many areas of the country.

The first results showed both Labour and the SNP slipping, with the Scottish Socialists polling around nine per cent in the Hamilton South constituency.

"We need to continue to focus on dignity in old age, opportunities for our young people and we need to think long and hard about how we engender responsibility within our communities," said Hamilton South MSP Tom McCabe.

Whilst he failed to pick up a constituency seat, Tommy Sheridan insisted the election was a victory for the socialist cause.

"The most important thing about the SSP tonight is our emergence across Scotland as a new political force that is willing to challenge poverty, inequality and low pay and fight for a better deal for the pensioners of Scotland," he said.

His party is expected to secure around five seats when the final list votes are counted - making one early gain in the Lothians regional list.

In Falkirk West Denis Canavan, who turned his back on Labour before the 1999 election, was re-elected as an independent.

Former SNP MSP Margo MacDonald has been returned as an independent after being squeezed out of the party.

"The cost of the Holyrood project and the management of it symbolises and crystallises to most people that feeling of disappointment that Jack McConnell talked about," she said.

In the constituency of Strathkelvin and Bearsden, Independent candidate Jean Turner defeated the sitting Labour MSP after a campaign fought on local NHS services.

And pensioner John Swinburne was elected as an MSP for the Scottish Senior Citizens' Unity Party on the Central Scotland list.

The Greens are set to increase their number also: after Dr Eleanor Scott secured a list seat in the Highlands and Robin Harper was joined by Mark Ballard on the Lothians regional list.

With just 48 per cent of voters taking part, turnout was down on 1999 following growing disillusionment with devolution.

Scottish secretary Helen Liddell dismissed claims that voters were turning their backs on the Scottish parliament.

"It was an absolutely miserable day and it is very, very difficult to get people to go out and vote when they are going to get drenched in the process," she said.