Since there's a form of proportional representation. In the Welsh Assembly, Labour is the largest party, and will remain so - but at the moment, they are so close to a majority (29 out of 60 seats) that they govern without forming a coalition. See
http://en.wikipedia.org/wiki/National_Assembly_for_Wales#Composition_of_the_AssemblyIt's notable that Labour lost what had been a rock-solid Labour seat to an Independent - an 'Old Labour' MP who had retired - and it remained 'lost' to his widow, when he died. Wales is very traditional Labour - and they resent Blair's style imensely. Labour will probably have to make a coalition with someone - the Lib Dems would be most likely, if they're big enough to create an overall majority.
Meanwhile in Scotland, Labour is in a coalition with the Liberal Democrats. The second largest party is the Scottish Nationalists; their main policy is full independence from the UK, but in other areas, they're not as right wing as Blair. They (and their Welsh equivalents) have been leading the attempt to get Blair impeached over the Iraq war, for instance. While
the latest poll shows them still behind Labour, the quote from the Labour leader in Scotland is notable:
In remarks which will be seen as distancing himself from the Prime Minister, Mr McConnell said: "The election should not be about - and no-one wants it to be about - the job of Tony Blair, the mortgage of Tony Blair or the future of any individual UK politician. This election has to be about the future of Scotland."
At the moment, a Labour/Lib Dem caolition still looks most likely here, but the polls seem very volatile. The Scottish Socialist Party is undergoing a messy breakup, which has lessened the chances of their forming a coalition of the nationalist parties with the SNP.