LABOUR'S chairman predicted today that a handover from Tony Blair to Gordon Brown would give the party a "rocket boost".

Hazel Blears admitted that Iraq and the cash-for-peerages affair had damaged her party and "overshadowed" its domestic record.

She said it was now "almost impossible" to imagine anyone else challenging the Chancellor for the Prime Minister's job and it was "up to the Prime Minister" to decide when to step down.

But speaking about a transition, she said it would give "a refreshed momentum in our party".

She added: "Having a new leader, a new administration can give a bit of a rocket boost to carry on."

Miss Blears suggested that while Labour needed a thorough debate on its future direction, it did not necessarily need a leadership contest.

She warned against the possible danger of "retreating into a comfort zone" rather than tackling hard issues.

She also indicated that she would stand as Mr Brown's deputy.

"A lot of people are asking me to do it - people across the party," Miss Blears said.