Labour heads into the local elections today fearing its worst result since 1968.

The government's troubles over the health service, the deputy prime minister's affair with a secretary and the foreign prisoner release scandal has left the party battling bad headlines as it sought to campaign for council seats in recent weeks.

Party strategists were predicting earlier in the week that as many as 300 council seats could be lost as well as control of key councils, particularly in London where every seat is up for grabs.

While that may have been seen as an attempt at expectation management so that bad results do not appear to be disastrous, some independent pollsters have also predicted a virtual wipeout for Labour in London.

Experts expect the party's reverses to be on a par with those suffered in 1968, when Harold Wilson's government was punished for economic problems that led to the devaluation of sterling.

Control of former stronghold councils including Manchester, Croydon and Camden could be lost as voters drift to rival parties or stay at home.

Labour could also finish the night as the third party in local government, putting further pressure on the prime minister's tenure in office.

Rebel backbenchers could use the results to demand an early exit for Tony Blair, or at least a clear date for his departure.

But loyalists have said the results should not be seen as a referendum on his leadership.

Defence secretary John Reid told the BBC that the challenge to Labour had been sharpened by David Cameron's Conservative leadership.

"The Conservative Party, which was comatose for a decade has smelt the coffee, at last wakened from its slumber and we are engaged in what we call democracy," he said.

However he added that he hoped the public was "sensible" enough to recognise Labour's achievements in local and national government.

"People will weigh all the things of the last few days and all the lurid headlines and difficulties for the government against what we have achieved in the last few years," he said.

Blair himself asked for voters to put the party's recent troubles in perspective.

"Nine days' headlines should not obscure nine years of achievement," he said.