Defending half the 3,300 seats in contention in 152 coun cils yesterday, Labour lost control of Oldham and other towns as the Lib Dems endured mixed fortunes. Labour voters seemed to be staying at home, much as party critics had feared. The Tory chairman, Michael Ancram, was delighted. But experts said the Tory campaign against asylum seekers had made only modest impact. Anticipating Mr Livingstone's victory Mr Blair, working on the peace process in Belfast, made arrangements to speak by telephone to the victor, a process that will enable him to avoid a photo handshake with the man he has repeatedly said will be a disaster for London and for Labour.
Labour is also concerned about recriminations when the inquest into the debacle starts today.
It will be made far worse if, as some MPs claim, the deeply loyal Mr Dobson finally blows his top in interviews or a book. Mr Dobson is said to blame Mr Blair's chief of staff, Jonathan Powell, and a small coterie of Labour insiders for undermining him. Mr Powell is believed to have been the chief advocate of running Mo Mowlam for the job - a plan she resisted until it was too late. He'll get one.