The Tories have suffered major losses in Rishi Sunak’s first electoral test as PM, with Labour claiming the results suggest a future General Election triumph.
Results from the local elections saw the Conservatives lose control of more than 10 councils while Labour had several big wins.
The Liberal Democrats also made gains as the Tories continued to lose seats across a series of councils across England.
Labour took Medway off the Tories and will run the Kent council for the first time since 1998.
They also gained control of Plymouth, where the Tories had run a minority administration – a result branded “terrible” by Government minister and local MP Johnny Mercer.
In Hertsmere, where Deputy Prime Minister Oliver Dowden is MP, the Tories lost control of the council, with 13 councillors voted out while Labour gained seven and the Lib Dems six.
Tamworth, Brentford, North West Leicestershire and East Lindsey also fell from Tory administrations to no overall control.
West Lindsey remained under no overall control but the Lib Dems replaced the Tories as the largest party.
In Boston, the Tories lost 10 councillors in the Lincolnshire town they had run as a minority, with independents now taking the majority of seats.
Labour replaced the Tories as the largest party in Hartlepool and Worcester.
As the results continue to roll in, Labour has predicted it can win the next General Election.
Shabana Mahmood MP, Labour’s National Campaign Co-ordinator, said: “These results show that we are on course for a majority Labour government.
“We have spent the whole campaign talking about Labour’s plan to tackle the Tory cost of living crisis which is the number one issue for voters.
“Rishi Sunak can’t talk about it because the Tories crashed the economy and they don’t know how to fix it.
“These results have been a disaster for Rishi Sunak as voters punish him for the Tories’ failure.”
But Tory party chairman Greg Hands told LBC’s Nick Ferrari at Breakfast that he was not convinced Labour had what it takes.
“It’s been a disappointing night but within that I don’t think its been a knockout performance from Labour either.
“They’re not doing well in some of the areas they need to gain to be back in government.
“So I think on that basis it’s going to be all to play for – delivering on those five priorities, delivering for the people.”
On the eve of the coronation, the Tories lost control in the Royal Borough of Windsor and Maidenhead, with the Lib Dems claiming victory.
Tory insiders said they had always expected a “tough night for the party”, but with the prospect of a general election in 2024 there will be concerns that they have suffered losses in the north, south and the Midlands.
Leaving the Conservative Party HQ, PM Rishi Sunak said: “We’ve just have a quarter of the results in, but what I am going to carry on doing in delivering for the people’s priorities.”
He added: “We’re making progress in key election battlegrounds like Peterborough, Bassetlaw and Sandwell.
“But the message I am hearing from people tonight is that they want us to focus on their priorities and they want us to deliver for them.”
In Tamworth – the seat of scandal-hit former Tory whip Chris Pincher – Labour made seven gains, pushing it from Conservative into no overall control.
But in Hull, Labour’s attempts to regain the council from the Liberal Democrats failed, with Sir Ed Davey’s party tightening its grip on the authority.
Standing in front of what was described as a “general election countdown clock” with a sign saying “Time’s up for Rishi Sunak” on the top, Lib Dem leader Sir Ed Davey said the party was making “big gains across the country”.
“We’ve beaten the Conservatives in Bath and in Brentwood, in Hertfordshire and in Hinckley,” he said.
“We’re making gains off Labour – we’ve increased our majority in Hull – and we’re making huge gains across the country against the Conservatives.
“We’re continuing to make sure the ‘blue wall’ tumbles down.”
Labour managed to hold several of its councils in areas including Manchester, Gateshead and Barnsley.
Speaking to supporters in Medway, where Labour gained the council from the Tories, Sir Keir said: “Make no mistake, we are on course for a Labour majority at the next general election.”
However, areas such as Burnley and West Oxfordshire remained under no overall control.
The Tories held on in Walsall, but continued throughout the day to lose several councils to no overall control.
By Emma Soteriou