Membership peaked at the time of the 1997 election

Labour's membership is at its lowest level since Tony Blair became party leader nearly 10 years ago.

The Iraq war and disputes over issues like foundation hospitals and student fees will widely be seen as playing a part in the slump.

Labour's own accounts showed at the end of December 2003 that membership stood at 214,952 - down 30,000 in a year. In 1997 at the election it was 407,000.

Group Save the Labour Party say current levels are the lowest in 70 years.

It is understood the party's National Executive Committee was told on Tuesday that membership fell even further to about 208,000 at the start of 2004 but is now believed to have stabilised.

'End to decrease'

But the membership is considerably lower than the 265,000 inherited by Mr Blair when he became leader in 1994.

Deputy Prime Minister John Prescott and other senior figures within Labour have written to many of the 200,000 lapsed members in recent months asking them to rejoin Labour.

Save the Labour Party's Peter Kenyon said: "If it is correct that the membership figure has stabilised, then we are very glad that the fall in membership which has been evident since 1997 has apparently come to an end.

"But what we are looking for are positive steps on the part of the leadership to ensure that we are going to be able to rebuild our membership and urge our members to play active parts in future election campaigns."

Different situation?

Labour chairman Ian McCartney said that in the first part of 2004, 9,000 new members had been recruited.

Party managers will be buoyed by news that Labour's finances have gone from a deficit of nearly �1m in 2002 to an operating surplus of �2.6m in 2003.

Commenting on that, Mr McCartney said: "The results from 2003 show a genuine improvement in the financial position of the Labour Party.

"Since the last general election, the party has faced a testing period financially.

"However, the surplus reported and the 9,000 new members recruited in the first part of this year, shows we have taken steps that will ensure the party is now well-placed to meet the challenges ahead."

A Labour spokesman stressed a national membership scheme had not been introduced until the 1990s and it was unfair to look at historical levels.

The Conservatives refused to reveal their membership levels. The Liberal Democrats estimate they have 73,000 members.