Thursday's historic elections gave way to the birth of a new era in British politics last night, with Labour set to lead a power-sharing government in Scotland, while facing the prospect of forming a minority administration in Wales.
Mr Donald Dewar, the First Minister elect, and the Liberal Democrat leader, Mr Jim Wallace, will begin negotiations this weekend on the terms for a formal Lib/Lab pact, after an election confirming Labour's dominance in Scotland, while leaving the party nine seats short of an overall majority in the new parliament.
The situation was less clear in Wales, where the electorate - often overlooked in the devolution battle - delivered a body blow to Labour, denying the party overall control of the new National Assembly, and handing Plaid Cymru its largest share of the vote.
Apathy was a major factor in this unexpected setback for Mr Blair's government - the turnout in Wales on Thursday was just 46 per cent. But a day of sensational results which saw Plaid capture traditional Labour strongholds in the South Wales Valleys forced an admission from Mr Peter Hain, the party's campaign director, that Labour would need to "modernise and regenerate" in its heart-lands.
Mr Alun Michael - Secretary of State, and putative First Secretary in the Welsh Assembly - eventually secured an Assembly seat through the regional top-up vote, courtesy of Plaid's victory over Labour in the first-past-the-post contest in Carmarthen East and Dinefwr.
With 28 seats, three short of a majority, Mr Hain last night refused to discuss possible deals with the Liberal Democrats (with six) while insisting Labour was committed to "partnership politics" and making the Assembly "work for Wales".
In Scotland, where the turnout was a more enthusiastic 58.70 per cent, though still well below general election levels, the final results left Labour with 56 seats in the 129-member parliament, to 35 for the SNP, 18 for the Conservatives, 17 Liberal Democrats and three Others, including Mr Dennis Canavan who scored a dramatic personal triumph in Falkirk after being rejected by Labour's selection process.
The Prime Minister, Mr Tony Blair, said the outcome showed the success of his devolution policy and had produced a convincing rejection of the separatists. "I believe and hope that out of these elections the Union of the United Kingdom will have been strengthened," he said.
Despite clear disappointment with its final take of the seats, the Scottish National Party was celebrating its confirmation as the main opposition to Labour, and a share of the vote equal to its previous best in 1974. And in a warning of the battles to come, the party leader, Mr Alex Salmond, said: "Being the opposition was not our goal in this campaign, we wanted to win. But oppositions have a habit of becoming governments."
Mr William Hague, the Conservative leader, heaved a sigh of relief as his party stood to gain some 1,500 seats in the council elections. However, expert analysts said the results had to be seen in the context of a very low (29 per cent) turnout.
Labour last night remained the largest party in local government and clearly on target for a general election victory in two years' time - with a verdict on Mr Hague's fate deferred until after next month's European elections.