The new Conservative party leader said the party was ''alive and well'' and it was a great honour they had given him.

''The party I want to lead will be an effective opposition to this government. It will campaign on the issues that affect people most in their daily lives - health, welfare, education and the environment. ''We'll take the government on over these major issues,'' he said.

Supporters of both candidates had previously claimed they were confident of victory but then said it would be inappropriate to comment after the catastrophic terror attacks in New York and Washington.

The result brings to an end to the bruising contest that has further exposed party divisions over Europe and the future course of the party.

It was conducted under elaborate rules introduced by Mr Hague, who resigned in June following Labour's second election landslide, and allowed every party member a vote for the first time.

However, the party grassroots could only choose between two candidates, chosen by Tory MPs who eliminated former Cabinet minister Michael Portillo.

Kenneth Clarke and Iain Duncan Smith, party defence spokesman, have spent the past three months trying to convince fellow Tory MPs and some 320,000 party members that they are the best man for the job.

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