AN election count ended in chaos when two victorious candidates were told they had lost.

Officials from Wear Valley District Council mislaid at least two ballot boxes, leading two Labour candidates to be wrongly declared as elected.

Elation turned to disappointment for Billy Hobson and Christine Wilson, as they were told the "lost" votes had changed the results - and the political make-up of the council.

Mr Hobson, a haulage company director, was only informed of the reversed decision in his Stanhope ward by a colleague.

However, he said he will not challenge the result. "It's regrettable, but I accept the fact that there was a cock-up," he said.

His seat was taken by Angela Bolam, an Independent candidate. Mrs Wilson, who stood in the West Auckland ward, was replaced by Liberal Democrat Colin Mairs.

Councillor John Ferguson, the leader of Wear Valley Lib Dems, said: "This count has been totally disorganised and a complete shambles."

A spokesperson for Wear Valley District Council blamed it on new counting arrangements and space restrictions and said lessons would be learnt.

Labour lost control of the heartland council, an authority it has held since 1995.

The Lib Dems gained several seats, giving them a total of 16. Labour is still the biggest party, with 18 seats, but will need to rule either with the Lib Dems or with Independent councillors, of which six were elected.

Labour leader Neil Stonehouse, who was returned in the Coundon ward, said: "It's a disappointing result, on a very low turnout. It's clearly a reflection of the national picture. I don't think it's a reflection on our work."

On Teesdale District Council Labour lost one seat to the Conservatives and two executive members were voted out.

Labour Councillor David Armstrong, who represented Barnard Castle West and was lead member for finance, polled just 139 votes. He was replaced by Conservative Barbara Harrison.

In the Staindrop ward, Kathleen Mary Mitchell, of Teesdale Independents Association (TIA), former lead member for health and housing, was replaced by David Reed, also of the TIA.

Richard Bell, Conservative councillor for Middleton-in-Teesdale, said: "We fielded two candidates and got an extra seat on the council, taken from Labour."

Tony Cooke, of the TIA, who beat Robin Simpson in the election for the Streatlam and Whorlton ward, said: "I'm the first councillor on the district council to live in Stainton Grove, and there are issues here which have been ignored in the past."