Tony Blair stepped down as Britain’s Prime Minister yesterday, having already relinquished his post as leader of the Labour Party last Sunday, to be replaced by former Treasury chief Gordon Brown.

Mr Brown takes over the headship of the party and of the country midway through a legislature as it became increasingly clear that Labour needed a new leader to face the next election to stand a better chance of being re-elected for the fourth successive term.

He has promised to win back the people’s confidence and re-evaluate the country’s policy in Iraq, two factors that reduced the popularity of his predecessor, and which “forced” Mr Blair to leave office at a relatively young age to make way for a new beginning.

At 44, Mr Blair was the youngest British Prime Minister for nearly two centuries, and he leaves now, aged 54, looking forward to a new potential role in the Middle East.

The new leader perhaps lacks the charisma of Mr Blair and, although he is certainly not a new face in Britain’s political history, and also carries part of the weight of Labour’s loss of popularity because of the Iraq war, he will bring with him a new impetus.

Mr Blair had created what was known as new Labour when he took over the helm of the party a decade ago. He leaves now with the Conservatives having a good chance to win over the government for the first time in a decade, giving Mr Brown the opportunity to turn things around in time.

Polls have shown that the Labour Party is leading over the Conservatives for the first time since October, no doubt a result of the change in the leadership that was announced earlier this year and the more recent focus on Labour as the change of headship takes place.

An Ipsos-Mori poll last Sunday showed Labour having the support of 39 per cent among those planning to vote in the next election, with the Tories garnering 36 per cent.

So far, Mr Brown has been welcomed with enthusiasm and support, but once his political honeymoon is over, Britain – and in a wider context Europe and the world – will expect results. Will he be following in his predecessor’s footsteps, or will he veer away and venture on new ground? Time will tell.

Mr Brown’s position on the war in Iraq will be monitored closely. Critics believe that Mr Brown will take up the option to call back more of the remaining 5,500 British troops still stationed outside the city of Basra by the end of this year, giving Mr Brown a push as he prepares to lead his party to an election that will have to be called by June 2010.

Equally important will be Britain’s relations with the European Union, which have not always been idyllic, and the position Britain will be taking in developments taking place in the Middle East, including the ongoing issue with regard to Iran’s nuclear programme.

In Europe, Britain must seek new avenues of cooperation with the stronger nations, and at the same time show more solidarity with the smaller ones, including Malta. In the Middle East, like Mr Blair, Mr Brown will seek to keep Britain at the heart of efforts for peace in the region, hoping to focus on rebuilding the economies of the West Bank and Gaza.

On the domestic front, the challenges that need to be tackled include the reorganisation of the education sector, improving public health and offering help to young people who, as things stand now, are priced out of the housing market.