Labour is suffering a grim night in local elections in England and Wales, losing more than 100 seats so far.
BBC research suggests the party has fallen into third place nationally, taking 24% of the vote, beaten by the Tories on 44% and Lib Dems on 25%.
It is thought to be the worst projected share for Labour in 40 years.
But the party's chief whip Geoff Hoon told the BBC there was "no crisis" for Prime Minister Gordon Brown in the lead-up to the next general election.
'Exceptional results'
The margin was similar to the drubbing received by John Major in council elections in 1995, two years before he was ejected from Downing Street by Tony Blair.
RESULTS ROUND-UP
General turnout looks like it will be about 35%, similar to last year
Projected national vote share: Tories 44%, Lib Dems 25%, Labour 24%
Worst share of national vote for Labour in recent history
London result on knife edge
Emily Maitlis election blog
Elections latest at-a-glance
So far the Tories have a net increase of more than 120 councillors and a 4% higher share of the national vote than at last year's local polls - giving them a projected Commons majority of 138.
Shadow foreign secretary William Hague said: "These are exceptional results and this could be the lowest Labour share of the vote in the modern history of local elections… This is a big step forward."
The Tories have gained control of several councils including Southampton, Bury, Harlow and Maidstone.
Labour's performance is likely to add to pressure on Mr Brown, who was criticised recently by backbench MPs over his handling of the abolition of the 10p income tax rate and is dealing with economic difficulties.
Olympics Minister Tessa Jowell said: "Nobody is going to pretend this is our greatest night...
"Generally I think that we would recognise that these elections have been conducted in the context of people feeling exposed and feeling anxious about the state of the economy and its impact on them."
Mr Hoon said: "There's no crisis. This isn't something that's going to affect the fundamental stability of the government.
"We have to go on making the difficult decisions the country requires."
Former Lib Dem leader Charles Kennedy said he hoped for a "solid" set of results, adding: "It is not impossible because Labour I think are in very great difficulty."
Deputy leader Vince Cable said: "The important thing is that we've beaten Labour into third place."
More than 4,000 seats on 159 councils were up for grabs in Thursday's elections, as well as the London mayoralty and assembly.
All seats are up for election in the 22 Welsh unitary authorities.
Key announcements still to come include:
Labour facing big council losses
Labour is suffering a grim night in local elections in England and Wales, losing more than 100 seats so far.
BBC research suggests the party has fallen into third place nationally, taking 24% of the vote, beaten by the Tories on 44% and Lib Dems on 25%.
It is thought to be the worst projected share for Labour in 40 years.
But the party's chief whip Geoff Hoon told the BBC there was "no crisis" for Prime Minister Gordon Brown in the lead-up to the next general election.
'Exceptional results'
The margin was similar to the drubbing received by John Major in council elections in 1995, two years before he was ejected from Downing Street by Tony Blair.
RESULTS ROUND-UP
General turnout looks like it will be about 35%, similar to last year
Projected national vote share: Tories 44%, Lib Dems 25%, Labour 24%
Worst share of national vote for Labour in recent history
London result on knife edge
Emily Maitlis election blog
Elections latest at-a-glance
So far the Tories have a net increase of more than 120 councillors and a 4% higher share of the national vote than at last year's local polls - giving them a projected Commons majority of 138.
Shadow foreign secretary William Hague said: "These are exceptional results and this could be the lowest Labour share of the vote in the modern history of local elections… This is a big step forward."
The Tories have gained control of several councils including Southampton, Bury, Harlow and Maidstone.
Labour's performance is likely to add to pressure on Mr Brown, who was criticised recently by backbench MPs over his handling of the abolition of the 10p income tax rate and is dealing with economic difficulties.
Olympics Minister Tessa Jowell said: "Nobody is going to pretend this is our greatest night...
"Generally I think that we would recognise that these elections have been conducted in the context of people feeling exposed and feeling anxious about the state of the economy and its impact on them."
Mr Hoon said: "There's no crisis. This isn't something that's going to affect the fundamental stability of the government.
"We have to go on making the difficult decisions the country requires."
Former Lib Dem leader Charles Kennedy said he hoped for a "solid" set of results, adding: "It is not impossible because Labour I think are in very great difficulty."
Deputy leader Vince Cable said: "The important thing is that we've beaten Labour into third place."
More than 4,000 seats on 159 councils were up for grabs in Thursday's elections, as well as the London mayoralty and assembly.
All seats are up for election in the 22 Welsh unitary authorities.
Key announcements still to come include:
