London - The British Labour government and Conservative opposition Wednesday hailed as "inspirational" the victory of Barack Obama in the American presidential election.

Prime Minister Gordon Brown Wednesday praised the "energizing politics and progressive values" of Democrat Barack Obama, whom he had met in London over the summer.

Conservative opposition leader David Cameron, who will be Brown's likely challenger in Britain's next general election, to be held by May, 2010, said Obama was "the first of a new generation of world leaders."

In a statement issued by Downing Street in London Wednesday morning, Brown said: "I would like to offer my sincere congratulations to Barack Obama on winning the presidency of the United States."

Brown also paid tribute to Republican candidate John McCain who he said had "fought a good campaign and has shown the characteristic dignity that has marked a lifetime of service to his country."

"The relationship between the United States and the United Kingdom is vital to our prosperity and security," read Brown's statement.

"Barack Obama ran an inspirational campaign, energizing politics with his progressive values and his vision for the future," he said.

Brown said: "We both have determination to show that government can act to help people fairly through these difficult times facing the global economy."

"And I look forward to working extremely closely with him in the coming months and years."

Cameron, 41, said America had made history by electing Obama and "proved to the world that it is a nation eager for change."

"This has been an exciting and inspirational contest with two great candidates. In these difficult times people everywhere are crying out for change. Barack Obama is the first of a new generation of leaders who will deliver it - he has my whole-hearted congratulations," said Cameron.

Government officials have said that Brown is looking forward to working with an Obama administration on a gradual troop withdrawal from Iraq and efforts to place the war-torn country on a strong economic and democratic footing.

Also, the Brown government, which has taken a lead in Europe in battling with the current global financial and economic crisis, will want to forge close links with a Democratic Obama administration over handling the fallout from the global crisis.