THE Government is assessing the damage caused by a series of high-profile setbacks as millions of voters gave their verdict in local elections.

As Tony Blair's tenth year in Downing Street began, more than half of the electorate yesterday had the chance to cast their vote for councillors in 176 areas across England, including Hartlepool, Gateshead, Sunderland, South and North Tyneside, Newcastle and Harrogate, North Yorkshire.

Labour was braced for a possible backlash amid controversy over the failure to deport foreign prisoners after their release, health service redundancies and John Prescott's affair with his secretary.

To compound matters, according to one poll, half of voters want Mr Blair to step down as Prime Minister by the end of the year.

Mr Blair has said he will quit before the next election, and it is thought that his favoured date for a handover of power is 2008.

However, the poll, for the BBC Local Election Results programme, found more than one in three of those questioned want Mr Blair to go now.

Another 14 per cent would like him to resign before the end of the year and only 23 per cent think he should stay on into next year and then leave before the end of the Parliament.

However, about 22 per cent, many of them Labour voters, think the Prime Minister should change his plans and fight a fourth General Election as Labour leader.

Mr Blair put on a brave face as he campaigned in London with Gordon Brown, the man expected to replace him when he steps down before the next General Election.

Only hours after facing a second week of stormy Commons clashes over the future of Home Secretary Charles Clarke, he tried to play down recent controversies.

Instead, he said voters should "think back ten years" and consider what improvements Labour had made on the economy, the health service, schools and investment in communities. Mr Blair cast his vote only an hour after the polls opened.

He arrived at Westminster City School, along the road from Downing Street, accompanied by his wife, Cherie. He was greeted by Labour candidate David Cole, and Tory Louise Hyams.

Ms Hyams asked the Prime Minister if he would be voting for her.

He replied: ''I don't think so, not quite.''

Meanwhile, the wife of the Deputy Prime Minister, Pauline Prescott, managed to smile for the cameras and briefly held her husband's hand last night as the couple cast their votes.