WILLIAM Hague dramatically announced this morning that he is to quit as Tory leader after his party's heavy election defeat.

Speaking outside Conservative Central office, he said he would step down as leader of the party when a successor can be elected.

''No man is more important than the party,'' he said.

His comments came after senior figures in the party including shadow chancellor Michael Portillo urged a period of reflection.

Shadow foreign secretary Francis Maude called for restraint from senior party members following Mr Hague's resignation.

''Under the Conservative party's new rules it is apparently unlikely that a contest to choose William's successor can be completed for at least two months.

''There is therefore ample time for us as a party to reflect on our future direction.''

Mr Hague's decision to step down received a mixed reaction from voters in his constituency of Richmond in North Yorkshire.

Claire Gazzard, 23, barmaid at the Richmond Comrades Club, said Mr Hague might come to regret his decision.

''I think it's disgraceful. People will be surprised round here because he's such a popular man. I think it's a bit of a knee-jerk reaction to what happened last night and he shouldn't have done it," she said.

But Colleen Howley, manager of the Richmond Caravan Park, praised Mr Hague for his courage, saying: ''I'm not really surprised by the news of his resignation and I think he was right to do it. Once you're beaten, you're beaten.

''It was a courageous decision and although I'm disappointed, it shows the measure of the man."

June Blair, of Chandler Close, Richmond, added; ''I may have the name Blair but my vote went to the Conservatives. I'm disappointed by Mr Hague's decision but not really surprised.

''He's a popular man around here but I think it's perhaps right that somebody else should lead the party.''

Edward Forth, the Liberal Democrat candidate who stood against 40-year-old Mr Hague in the Richmond constituency, said: ''I think we knew he was going to resign - it was just a matter of time.

Mr Forth said he believed there would be a by-election in the Richmond constituency in the near future.

''It will be very difficult for Mr Hague after being the Tory leader to stay on as a backbench MP,'' he added.

Christopher Robson, chairman of the Richmond Conservative Association, said Mr Hague had a long-term future in the area.

''He will remain loyal. I think it's a very courageous decision to resign."