By-election blow to Howard

Michael Howard was dealt a devastating eve-of-conference blow today after the Tories were pushed into fourth place in the Hartlepool by-election.

They trailed in behind anti-EU party UKIP after a shattering night at the polls. It is the first time the Conservatives have failed to make the top three in an English by-election since the Second World War.

Although Labour held on to the seat, its majority was slashed from more than 14,000 to just over 2,000. The result was a disappointment for the Liberal Democrats, whose candidate Jody Dunn came close to seizing the seat.

The extraordinary upset comes two days before the Tories gather for their annual conference and sets the scene for a week of bitter infighting and recriminations.

It will put pressure on Mr Howard, raising serious questions over whether his party can make significant inroads into Labour's huge majority at the next general election.

Today senior Conservatives admitted the party was failing to get its message across. David Willetts, shadow work and pensions-secretary, said: "This is very disappointing. There is no point in pretending otherwise. We have to consider what it is that we need to do to convey more effectively than we have so far that we have policies that can make life in Britain as it is today better."

Party co-chairman Liam Fox tried to play down the poor showing. He said: "This is a disappointing result for us. But this is a story about Labour. This is a disastrous result for them. It demonstrates a complete collapse in trust for Tony Blair."

Last night's bitter poll battle was triggered by the departure of Peter Mandelson, who is taking up a new job as EU Commissioner. Labour candidate Iain Wright will become his successor after polling 12,752 votes to Jody Dunn's 10,719. Despite Mr Mandelson's huge majority, there were fears Labour could lose the seat because of the fallout over the Iraq war.

Today Mr Wright said: "Tonight's result is great news for Tony Blair, a huge disappointment for Charles Kennedy and an absolute disaster for Michael Howard." Mr Wright, a Hartlepool councillor, added: "I have always been proud to be from Hartlepool but I have never been prouder than tonight."

Tory Jeremy Middleton came fourth with 3,044 votes, behind the UK Independence Party's Stephen Allison on 3,193. The result will raise serious questions over the way the Tories handled the campaign. While the Liberal Democrats poured huge resources into campaigning, with leader Charles Kennedy making several trips to Hartlepool, the Tories failed to send high-profile figures to the area.

It will also raise questions over whether the party is focusing on the right policies.

An Economist poll today suggests the party could put on extra votes by taking a tougher line on Europe and immigration. The poll said 44 per cent of voters would be more likely to vote Conservative if the party took a harder line on immigration. Only six per cent said they would be less likely.

Turnout was about 46 per cent, down from 56 per cent at the 2001 general election.

Mr Wright's victory speech was drowned out several times by jeering from different groups. At one point Ms Dunn was forced to leave the podium after Fathers 4 Justice campaigner Paul Watson poured purple powder over her head.

Today the UK Independence Party were jubilant about their performance - claiming it was only a matter of time before they won seats.