Lib Dems concede Oldham by-election

The Liberal Democrats have conceded defeat in Oldham East and Saddleworth as the coalition suffered a bloody nose in its first by-election test.

Party president Tim Farron said its candidate Elwyn Watkins had come a “decent second” to Labour in the contest.

But there were early indications that the Opposition could have secured a majority of 3,000 or possibly even more – which would be a major setback for Deputy Prime Minister Nick Clegg and the Lib Dems.