Cabinet bids Blair an emotional farewell

Tony Blair told an emotional last meeting of his Cabinet yesterday that it was "the right moment to go" after he received tributes and a standing ovation from senior colleagues for his 10 years in office.

Mr Blair also promised Gordon Brown that he would have his "unswerving support" after he takes over as Prime Minister next Wednesday.

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The Cabinet gave Mr Blair an unprecedented standing ovation, but before had left the room, the jostling for position in the next Brown cabinet had already begun. David Miliband, who refused to run against Mr Brown for the leadership, was emerging as a favourite to be rewarded by being appointed as the Foreign Secretary to replace Margaret Beckett, who was said to be keen to hold on to her job. Peter Hain, whose Northern Ireland post was offered to Paddy Ashdown, is expected to be dropped.

Mr Miliband arrived late for question time in the Commons, joking that he was delayed by having "to cross the floods of tears that are now trailing down Downing Street".

Jack Straw, the Leader of the House and Gordon Brown's campaign manager, who opened the tributes, said later it had been "very poignant and moving".

Baroness Thatcher, who was in tears when she left Downing Street for the last time, told her final cabinet after they had stabbed her in the back: "It's a funny old world."

Mr Blair's final remark, 'This is the right moment to go", showed he was alive to the criticism of many Labour MPs that with the Iraq crisis, he has outstayed his welcome. Brown allies are concerned that his successor has precious little time to make an impact before Parliament rises for the summer recess. The reshuffle will be crucial in making an impact.

There was hardly a mention of Iraq, for which Mr Blair is destined to be remembered, during the tributes, which dominated the one-hour cabinet meeting, before Mr Blair hurried off without Mr Brown to the EU summit in Brussels.

Cabinet ministers had paid for leaving presents for the Prime Minister and his deputy, John Prescott, who is also standing down next week. Tessa Jowell, one of Mr Blair's most loyal supporters in the Cabinet, was chosen to present him with a painting of Chequers. Hilary Armstrong, who will also leave the Cabinet next week, presented Mr Prescott with a print of Admiralty House, where he has his office and the grace and favour flat.

Jack Straw, the Leader of the House, who is tipped to get a senior post in the Brown cabinet, told Mr Blair: "History will look on you as one of the most successful prime ministers ever."

He said Mr Blair helped to bring about a difference in attitude in Britain on racial and gender prejudice and helped to create a "society where people are at ease with themselves".

Mr Miliband singled out the peace deal in Northern Ireland as Mr Blair's major achievement. Mr Brown then intervened, saying: "People will look back in 100 years' time and see the achievements of the Prime Minister, which have changed this country for good. They are historic and enduring."

Paraphrasing Isaac Newton, Mr Brown added: "Whatever we achieve in the future will be because we are standing on your shoulders." Mr Prescott said that he was immensely proud of what the Government had achieved and he "would walk out of office with his head held high".

The Prime Minister paid tribute to John Reid, who is also standing down, and Ms Armstrong, the "impartial Civil Service", and to Mr Prescott, whom he described as a "wonderful colleague", praising his intelligence and his shrewdness. Mr Blair said history would show how significant a part Mr Prescott had played in his premiership.

A spokesman for Mr Blair said yesterday: "While undoubtedly there was some sadness, the overall mood was one of good humour and very warm affection. Iraq was mentioned as one of the difficult decisions the Prime Minister has faced up to, as was Afghanistan."