By Jennifer McKiernan & Becky Morton
Political reporters
Rishi Sunak has been hit by a string of defeats in the last big test of public opinion before a general election.
Labour took Blackpool South from the Tories in a by-election by a huge margin and won target councils across England.
Voters in Tees Valley bucked the trend by re-electing Tory Lord Ben Houchen for a third term.
Many more results are still to come – with just over a third of 107 councils declared so far.
Speaking at midday, Mr Sunak said results were still coming in, although he admitted they were “disappointing” and added “I’m focused on delivering for the people of this country”.
Lord Houchen denied that he had shied away from campaigning as a Conservative or mentioning Rishi Sunak in his campaign literature during the Tees Valley mayoral contest.
He told Sky News: “We absolutely don’t shy away from that at all, and Rishi’s been up during the campaign and we have always said Rishi’s been a great friend to the people of Teesside, Darlington and Hartlepool.”
Most other mayoral results – including London, where Labour’s Sadiq Khan is aiming to win a third term – will come on Saturday.
Labour is gaining seats across England in local elections and took Blackpool South in a Westminster by-election.
Partky leader Sir Keir Starmer said the Blackpool result – a massive 26% swing to Labour – sent “a direct message” to Rishi Sunak from voters that “we want change”.
He said: “That wasn’t just a little message, that wasn’t just a murmur, that was a shout from Blackpool – we want change.
“And Blackpool speaks for the whole country – it’s saying that we’ve had enough now.”
Conservative MP Paul Scully told LBC the results so far were “pretty horrendous” and the party needed to “suck that up, take it on the chin, be humble” and “admit the fact we need to create a vision over the next few months ahead of a general election”.
MP Dame Andrea Jenkyns, a longstanding critic of Mr Sunak, urged him to listen to the electorate and change course, saying the party needed to “wake up, be conservative, or we lose”.
But Conservative MP for Cleethorpes, Martin Vickers, backed Mr Sunak’s leadership and called the idea of changing leader “complete madness” just months away from a general election.
Despite a general election expected to be called in the next six months or so, he told BBC Breakfast: “Overall a disappointing night for us but that’s what you’d expect from parties in midterm of government.”
Labour will be pleased to have regained control of key council targets Hartlepool, Thurrock, Rushmoor and Redditch – areas where they are aiming to win at the general election later this year.
But, there is evidence in areas with a significant Muslim population that Labour’s stance on Gaza is hurting the party.
In Oldham, where two Labour councillors quit the party over Gaza earlier this year, Labour lost control of the council.
Labour MP Pat McFadden, the party’s national campaign coordinator, admitted “strong feelings” around the Middle East were “a factor” in the losses, adding: “I don’t think there’s any point denying that – it does get raised”.
Reform UK is doing well in the areas where it has fielded candidates – and nearly beat the Tories into second place in Blackpool South.
Reform leader Richard Tice said the results showed his party “is rapidly becoming the real opposition to Labour”.
The Green Party is also performing well and heading for a record number of councillors.
The Liberal Democrats have made modest gains so far but the party’s deputy leader Daisy Cooper said most of their target areas, including Tunbridge Wells and Wokingham, won’t declare until later.
“We’re very hopeful we can make some significant gains in both places,” she told the BBC’s Politics Live, adding Lib Dems were making “significant gains, particularly in those places where we’re ideally positioned to win seats off the Conservatives at the next general election”.
The by-election in Blackpool South was triggered by the resignation of former Conservative MP Scott Benton, who was suspended from the party after being caught in a lobbying sting.
Labour candidate Chris Webb overturned a majority of 3,690 to defeat Conservative David Jones in the constituency, which was previously held by Labour from 1997 to 2019.
The swing of 26% from the Tories to Labour was the third biggest in a by-election since 1945.
Overall, it was a bad night for the Conservatives, who lost more than 120 council seats and control of three councils, while Labour gained 52 council seats.
Elections expert Prof Sir John Curtice said the Tories could be on course to lose 500 councillors in “one of the worst, if not the worst” performances by the party in 40 years.
There are nine other mayoral contests taking place – including in London, Greater Manchester and Liverpool City Region.
The East Midlands, the North East, and York and North Yorkshire are also electing mayors for the first time.
Elsewhere, 37 police and crime commissioners are being elected in England and Wales.
Votes are still being counted in the majority of councils, with the final declarations not expected until Sunday.