The Liberal talent for by-elections emerged again and all three councillors for Leyton are now Social and Liberal Democrats.

As celebrations went on until the early hours of Friday, victorious candidate David Worsfold said the SLD could extend its winning run in another by election and boot Labour out of office.

Defeat for Labour means a three-seat majority on the council has been reduced to just one.

This makes it a distinct possibility that crucial issues could be defeated if a councillor is sick, on holiday or even caught in traffic.

Labour candidate John Wray was disappointed but generous in defeat. '

He said: "I never expected to win and never felt confident. I always felt the Liberals would win they're good at by-elections.

"I think the rates issue may have given them the majority but it wasn't the deciding factor."

Mr Wray vowed to fight again.

"I am going to stand for Labour again. There's a solid Labour vote in the ward that needs to be nurtured."

Agent for the SLD Councillor Philip Arnold said Labour had done badly for two reasons: "They failed to oppose the plan to relocate Spitalfields Market in Leyton and told people lies about the SLD that people didn't believe."

"It was a tremendous victory," said Mr Arnold. "The Conservatives have been humiliated in this election."

Mr Worsfold, a financial journalist, said before the election that Labour had wasted ratepayers' money and overseen a decline in services.

"Its local record is so poor it would be laughed at if put before the electorate," he said.

Mr Worsfold said his first priority was "to get a better deal for council tenants."

In confident mood he told the Extra: "Give us another by-election so we can return sanity to Waltham Forest Council."