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		</div><p><a href="http://londonglossy.com/wp-content/uploads/2011/01/lib-dems-concede-oldham-byelection.jpg"><img class="alignnone size-full" title="Ballot papers are placed on tables before counting in the Oldham East and Saddleworth by-election" src="http://londonglossy.com/wp-content/uploads/2011/01/min-lib-dems-concede-oldham-byelection.jpg" alt="Ballot papers are placed on tables before counting in the Oldham East and Saddleworth by-election"/></a></p>
<p>The Liberal Democrats have conceded defeat in Oldham East and Saddleworth as the coalition suffered a bloody nose in its first by-election test.</p>
<p>Party president Tim Farron said its candidate Elwyn Watkins had come a &#8220;decent second&#8221; to Labour in the contest.</p>
<p>But there were early indications that the Opposition could have secured a majority of 3,000 or possibly even more &#8211; which would be a major setback for Deputy Prime Minister Nick Clegg and the Lib Dems.</p>
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