At the time, the Conservatives sustained heavy losses and the election was seen as an indication of the government's lack of popularity.

This time round the elections were dominated by an overwhelming lack of interest. Only a third of the electorate turned out to vote, and in some places turnout was as low as 20 per cent.

Labour won 38 per cent of votes cast, down from 44 percent at the general election. The Conservative's share of the vote remained more or less static at 32 per cent and the Liberal Democrats won 25 per cent of the vote. In terms of seats, the Labour Party has 2,051 seats, down 111, the Liberal Democrats 732, down from 829, and the Conservatives have 997, up from 724. The results do not dramatically alter the balance of power in the local councils and allthe three main parties insist they have done well.

The Labour Party, particularly, facing its first election defeats since last May's general election claims the only thing to worry about is voter apathy. Deputy Prime Minister John Prescott said the party was ``concerned about the turnout'' but dismissed the suggestion that the results signalled the end of the electorate's honeymoon with the Labour Government.

He told the BBC's Today programme, ``It is quite unprecedented for the Government after 12 months to have such a level of support.... They usually swing against the government in office.''

In London, where a referendum on a future elected Mayor and assembly for the city was held alongside the election to the local councils, some 72 per cent of the turnout (about 34 per cent) voted `yes'. This sets the stage for another chapter of constitutional reform that the Labour government announced after coming to power.

Prime Minister Tony Blair declared himself very pleased with the result despite thefact that the low turnout appeared to indicate general indifference to the idea.

Blair said the results were ``very good'' for his party. ``In areas where you have got good, dynamic New Labour councils delivering decent services, people are voting for it and giving us an even bigger vote than we had a few years ago,'' he said, adding, ``In some of the Labour heartlands we have been given a message from the electorate that we need to take account of.''

One such heartland was the traditionally Labour city of Liverpool where the Liberal Democrats gained control after more than 15 years of Labour domination. Liverpool city council was one of several Labour controlled councils that has over the last many years been subject to corruption and mismanagement inquiries. A liberal democrat spokesperson suggested that New Labour may actually been relieved to be rid of this burden. The Liberal democrats see Liverpool as a major triumph despite having lost around a 100 seats and over all control of seven countycouncils.

The Conservatives regained their symbolic heartland, Tunbridge Wells, among 250 seats that they picked up. While this in no way changes their position at number three (after Labour and the Liberal Democrats) in the local government stakes, Conservative Party Chairman Lord Parkinson declared, ``Let's not forget the fact that we were the people who picked up 250 seats last night... We've started to win again... we're on our way back.''

A party spokesperson, MP Alan Duncan was more cautious. He described the results as ``modest gains''.