PRIME Minister Tony Blair was facing a rough ride this morning in the biggest test of public opinion ahead of the next General Election.

When the first result to be declared in the local elections came in last night, Labour lost five seats to the Conservatives at Tamworth, in Staffordshire, where the Tories retained control and strengthened their hold on the council.

Meanwhile, Conservatives and Liberal Democrats predicted significant net gains in councillors in the 176 local authority areas in England - including Sunderland, where Labour maintained control, Hartlepool, where they gained two seats, Gateshead (Labour hold), North Tyneside (no overall control), Newcastle (LibDem hold). Results were still awaited in Harrogate, North Yorkshire, and South Tyneside.

If their expectations are confirmed this morning, Labour could lose hundreds of councillors and relinquish control of a number of town halls.

However, in Hartlepool, which famously elected a candidate dressed as a monkey as mayor in 2002, national troubles did little to hinder Labour.

Fifteen seats were contested - seven of which were held by Labour, three each by the Liberal Democrats and Independents, and two by the Conservatives.

Labour held on to its seven, but gained two - from the Independents, in the Burn Valley ward, and from the Lib Dems, in the Stranton ward. Labour Group leader Robbie Payne said: "I would be lying if I said we had done as well as we expected. This was a fantastic result.

"The people of Hartlepool have looked beyond the headlines we have had over the past nine days and have voted on what the Labour Party has delivered in the past nine years."

The Conservatives held both their seats, while the Independents held one and gained one when Stephen Gibbon was the surprise victor in the Fens ward, ousting long-serving Lib Dem Bob Flintoff.

A bad outcome for Labour is expected to lead to a Cabinet reshuffle, possibly as early as today.

Ministers were reported to have been asked to stay in London overnight, increasing the speculation.

Conservative leader David Cameron and the Liberal Democrats' Sir Menzies Campbell were hoping for a significant boost in their first electoral test since taking the helm of their parties.

Voters went to the polls at the end of one of Labour's worst periods of its nine years in power, with negative publicity over failures to deport released foreign prisoners, NHS funding and Deputy Prime Minister John Prescott's affair.

Mr Prescott and Home Secretary Charles Clarke were expected to take the blame for any Labour losses.