POLITICAL leaders today claimed electoral sanity was returning to Burnley after the British National Party suffered a by-election defeat.

But the party's opponents were urged not to get carried away and warned that there was still much work to do after the far right was only beaten by 11 votes -- after a recount.

And their were ominous signs for Labour after the council's ruling party was pushed into third place by a shock Liberal Democrat victory in Hapton with Park ward.

Peter McCann won the seat with 788 votes with the BNP's Andy Kenyon polling 777. Labour candidate and former party deputy leader Andy Tatchell polled 679 votes.

The result means that Labour now have an overall majority of just one seat on the borough council but also that the BNP are no longer the official opposition. Both the BNP and the Liberal Democrats now have eight seats each.

The by-election was prompted by the resignation of sitting councillor Kevin Birchall who quit in protest at the success of the BNP candidate Len Starr in the ward in the May.

Liberal Democrat party leader and former mayor Gordon Birtwistle said: "This shows sanity has returned to Burnley after the madness of the May elections. Our victory shows there is a credible alternative to the BNP and there are moderate people who want the best for Burnley and are prepared to work hard for the town.

"We have to build on this to show people we can achieve things that make a difference in peoples' lives. Extremism has no place in this town."

Victorious Liberal Peter McCann, 43, a divorced father-of-two who lives on the Barclay Hills estate in Burnley said: "This is an absolutely fantastic result for myself and the Liberal Democrats and shows the tide has turned against the BNP.

"I'm looking forward to representing people in Padiham and Hapton and repaying them for putting faith in me."

Labour leader Stuart Caddy said: "Our vote held up well and it was a hard fought campaign. Congratulations to the Liberal Democrats.

"We are working hard to engage with people and will continue to do that up until the next election. I'm disappointed for Andy Tatchell who worked very hard.

"We must take heart from the fact the BNP failed to gain another seat and I hope we have turned the tide against them. This shows people are returning to the mainstream parties and means the BNP are no longer the opposition, but an opposition."

Burnley MP Peter Pike said: "I'm glad the BNP did not get in, but Labour still has a lot of work to do locally and nationally to put things right."

The BNP's Burnley organiser Simon Bennett said: "We're disappointed because were were seen as the favourites by some and were in it to win.

"Being so close to victory makes it harder, but shows support is still strong.

"I don't think the result shows people are turning against us. We only lost by 11 votes and pushed Labour into third place. We'll be back to fight another day."

Conservative Alan Marsden received 62 votes and Independent Patricia Stinton 76 votes.

Turn-out was an above average 53.5 per cent. The count took place at Burnley FC home Turf Moor.