Lib Dems predict victory in Eastleigh, with UKIP in second

Counting in the by-election continues as the Lib Dems say they have held the seat and predict that UKIP has beaten the Tories.

The counting is ongoing in Eastleigh, with the Lib Dems increasingly confident that they've held the seat. The party, which first won the constituency in 1994 (another by-election), expects its majority to be in the thousands, not the hundreds (it is currently 3,864).

Both the Lib Dems and Labour are predicting that UKIP has finished second, pushing the Tories ino third place. If true, this would be a disastrous result for David Cameron. His old rival David Davis was likely right when he suggested earlier this week that it would provoke a "crisis". But Cameron's right-wing critics will have trouble explaining why the Tories performed so poorly after a hard-edged campaign that focused on immigration and welfare and after the promise of an in/out EU referendum.

Labour is resigned to finishing fourth, although the party believes it has increased its share of the vote from the 9.6 per cent recorded in 2010. The result will undermine Ed Miliband's "one nation" narrative but shadow ministers point out that while the seat is 16th on the Tories' target list, it is 258th on Labour's. The swing required to win Eastleigh would put Labour on course for a majority of 362.

Turnout was a relatively impressive 52.8 per cent, down from 69.3 per cent at the general election. We'll bring you the result as soon as it's announced around 4am.

Party representatives watch as votes for the Eastleigh by-election begin to be counted. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Labour tensions boil over at fractious MPs' meeting

Corbyn supporters and critics clash over fiscal charter U-turn and new group Momentum. 

"A total fucking shambles". That was the verdict of the usually emollient Ben Bradshaw as he left tonight's Parliamentary Labour Party meeting. His words were echoed by MPs from all wings of the party. "I've never seen anything like it," one shadow minister told me. In commitee room 14 of the House of Commons, tensions within the party - over the U-turn on George Osborne's fiscal charter and new Corbynite group Momentum - erupted. 

After a short speech by Jeremy Corbyn, shadow chancellor John McDonnell sought to explain his decision to oppose Osborne's fiscal charter (having supported it just two weeks ago). He cited the change in global economic conditions and the refusal to allow Labour to table an amendment. McDonnell also vowed to assist colleagues in Scotland in challenging the SNP anti-austerity claims. But MPs were left unimpressed. "I don't think I've ever heard a weaker round of applause at the PLP than the one John McDonnell just got," one told me. MPs believe that McDonnell's U-turn was due to his failure to realise that the fiscal charter mandated an absolute budget surplus (leaving no room to borrow to invest), rather than merely a current budget surplus. "A huge joke" was how a furious John Mann described it. He and others were outraged by the lack of consultation over the move. "At 1:45pm he [McDonnell] said he was considering our position and would consult with the PLP and the shadow cabinet," one MP told me. "Then he announces it before 6pm PLP and tomorow's shadow cabinet." 

When former shadow cabinet minister Mary Creagh asked Corbyn about the new group Momentum, which some fear could be used as a vehicle to deselect critical MPs (receiving what was described as a weak response), Richard Burgon, one of the body's directors, offered a lengthy defence and was, one MP said, "just humiliated". He added: "It looked at one point like they weren't even going to let him finish. As the fractious exchanges were overheard by journalists outside, Emily Thornberry appealed to colleagues to stop texting hacks and keep their voices down (within earshot of all). 

After a calmer conference than most expected, tonight's meeting was evidence of how great the tensions within Labour remain. Veteran MPs described it as the worst PLP gathering for 30 years. The fear for all MPs is that they have the potential to get even worse. 

George Eaton is political editor of the New Statesman.