A DISASTROUS election for Labour means the party could be set to lose control of Burnley for the first time ever.

The Liberal Democrats gained five seats overall to take them level with Labour on 16 and now look likely to take power in a coalition with the Conservatives.

Labour lost five seats, including party and council leader Stuart Caddy and his right-hand man Peter Kenyon.

The far-right British National Party also gained ground after winning two seats, although their progress was stunted by one loss.

But it was the Liberal Democrats' night as they enjoyed one of the best results for the party in the country.

Liberal Democrats leader Gordon Birtwistle, who now looks the most likely leader-in-waiting of the council, said: "This has been a great election for us and we are absolutely delighted.

"Labour have totally collapsed and we are now in place to work for the people of Burnley to make it a better place to live and work.

"We must be allowed time to deliver the improvements we want to see, but we will get there in the end."

The precise make-up of the executive and its new leader are likely to be decided at a series of party meetings between all parties over the next few days.

The closer links between the Tories and the Liberal Democrats make them the most likely bedfellows in any coalition.

Conservatives gained one seat to take their total to five.

Conservative leader Peter Doyle said: "We are very pleased.

"The party now has five seats and I think we managed to prevent the BNP gaining more because of the number of candidates we put up.

"We will now go away and talk to other parties about what happens next."

Mr Caddy, who has led Burnley council for the past eight years, said he was disappointed to lose his seat after he was beaten into third place in Rosegrove with Lowerhouse by the victorious Liberal Democrats and the BNP.

However he said he would continue working to try and make Burnley a better place.

He said: "Of course I am disappointed with the result, but I am proud of what Labour has delivered.

"I have been proud to serve the people of Burnley.

"I have thoroughly enjoyed my time as leader and I have absolutely no regrets.

"I will be glad to have the chance to spend more time with my family, but I will continue trying to help people wherever I can."

The BNP now have a total of seven councillors and remain the third largest party.

Despite their success the BNP are unlikely to find themselves with any seats on a new executive after the Liberal Democrats said they would not work with them.

BNP spokesman Len Starr, whose party now holds all three seats in Hapton with Park, said: "This has been a very strong showing for us with an excellent result in Hapton, which is the first ward in the country to have a full set of our councillors.

"Even though so many people in the town have voted for us, we don't expect the other parties to allow us any seats on the new executive."