DURHAM County Council leader Albert Nugent is to face an immediate challenge for the leadership of the new unitary authority.

As the Labour Party took stock of yesterday's election results and digested the bitter pill that its majority had been reduced to eight, senior sources said at least five or six people were weighing up whether to stand for the position of leader.

Among those who are believed to be preparing to throw their hats into the ring are the leader of Easington District Council, Alan Napier, and the present deputy leader of the county council, Clive Robson.

But Councillor Nugent is ready to do battle and speaking from the leader's room on the morning after he had topped the poll in his Deneside ward, he made no secret of his plans.

"I have the experience and knowledge of this authority and I will definitely be standing," he said. But in the corridors outside his office, challengers were clearly emerging.

Councillor Robson has declared his intentions, saying: "I will discuss it within the party, but certainly I would hope to go for it."

Less willing to show his hand was Councillor Napier, who told The Northern Echo: "Over the weekend I will be speaking with my family and colleagues within and outside the council before I make a decision about the leadership of the new authority."

Last night, Councillor Simon Henig, deputy leader of Chester-le-Street District Council, confirmed he would be "taking soundings" from friends before deciding whether to put his name forward.

Outside the leadership battle, others were assessing the overall political picture emerging from an election night on which Labour suffered a number of high-profile losses, including former county council leader Ken Manton, in Bishop Auckland town.

Among other casualties were county council chairwoman Edna Hunter, in Tanfield, and Wear Valley District Council leader Neil Stonehouse, in Coundon.

The elections left Labour on 67 seats, the Lib Dems on 27, independents on 22 and the Conservatives on ten - a Labour majority of eight.

The Lib Dems confirmed their position as the main opposition party, winning 15 seats in Durham, including a notable win for John Wilkinson, in Deerness Valley, one in Derwentside, two in Easington, three in Sedgefield and six in Wear Valley.

The independents increased their number of seats from three to 20, taking ten seats in Derwentside, while John Shuttleworth scored a remarkable 2,035 votes in Weardale.

Half the Conservatives' ten seats were in its Teesdale heartland and the party also made unexpected gains in Willington and Pelton.

The British National Party, which fielded 30 candidates across the county failed to win a single seat, but came within 130 votes of capturing Tudhoe.