Labour has won the Hartlepool by-election, in a contest which saw the Conservatives fall to fourth place behind the UK Independence Party.

Iain Wright, the Labour candidate, polled 12,752 votes, compared to 10,719 for Lib Dem Jody Dunn.

The Conservative candidate, Jeremy Middleton, took 3,044 votes, behind third placed UKIP challenger Stephen Allison who polled 3,193 votes.

Wright said the outcome was bad news for the Tories and Lib Dems.

"Tonight's result is great news for Tony Blair, a huge disappointment for Charles Kennedy and an absolute disaster for Michael Howard."

Conservative spokesman David Willetts accepted the outcome was a poor one for his party.

"It is a blow, and it is all the more frustrating because we know on the doorstep that people are getting fed up with this Labour government," he said.