LONDON, Nov 9: British Prime Minister Tony Blair suffered his first major parliamentary defeat as prime minister on Wednesday over new counter-terrorist powers, raising fresh questions about his authority.

The elected House of Commons voted by 322 to 291 against plans to let police hold terrorist suspects for up to 90 days without charge, as about 40 members of Mr Blair’s Labour party refused to support him.

Mr Blair had dramatically recalled his two top ministers — finance minister Gordon Brown and Foreign Secretary Jack Straw — from abroad in a bid to avoid defeat, but to no avail.

Police called for the new powers after suicide bombers killed 52 people in London on July 7. Critics say the powers would be a huge infringement of civil liberties.

Parliamentarians later voted in favour of a much lower, 28-day detention limit, up from 14 now.

Mr Blair had earlier put his personal authority on the line, telling parliamentarians it was their ‘duty’ to support the measure.

“We are living in a country that faces a real and serious threat of terrorism — terrorism that wants ... to inflict casualties on us without limit,” he said.

“I appeal to the House to have some responsibility here.”

Not enough of his supporters listened.

The financial markets reacted swiftly to his defeat, with the pound dropping 0.5 cent against the dollar after the vote. “It highlights the weakness of Blair’s leadership and increases the risk on UK assets, but like most political events of the past year, the impact is likely to be short-lived,” said Adam Cole, senior currency strategist of RBC Capital Markets of the pound’s fall.

WANING POWER: An election in May slashed Mr Blair’s parliamentary majority to 66, about 100 less than he has been used to, meaning fewer than 40 Labour members can defeat him by voting with the combined ranks of the opposition.

Many say his decision not to fight another election has weakened his authority. The decision to recall Chancellor of the Exchequer Gordon Brown from the Middle East will reinforce the view that he is increasingly reliant on his likely successor.

—Reuters