British ministers conceded early yesterday that the government had suffered a hammering at the polls after early council election returns suggested Labour's vote was sliding.

After the first three councils were declared, the Conservatives had gained 18 seats while Labour had lost 23. I he Liberal Democrats had gained one.

In the new unitary author-ity of Central Bedfordhshire, rhe Conservatives gained control while Labour failed to win a seat. The Tories also strengthened their control of 1 incolnshire County Council.

The early setbacks for the Government came amid signs that millions of voters had shunned the last big test of public opinion before the general election, suggesting the main political parties had been hit by a backlash over the expenses scandal.

Party officials agreed that turnout in yesterday's European and local council elections had fallen in most areas. They predicted last night that only about 30 per cent of electors would have cast a vote. The full results from councils will be announced today, with the European results declared on Sunday