The UKIP phenomenon: party makes dramatic gains

The party has already made 42 gains and is averaging 26 per cent of the vote in those areas where it stood.

Most county councils haven't even begun counting yet, but it's already clear that it's Nigel Farage who'll be wearing the biggest grin today. With seven of 34 councils declared, UKIP has gained 42 seats - two more than it was forecast to gain in total - and is averaging 26 per cent of the vote in those wards where it stood. It is, as the usually restrained pollster John Curtice said, "a phenomenal performance". 

After a comfortable win in the South Shields by-election (in which UKIP finished second), Labour has gained 30 seats and is hoping to win back Derbyshire and possibly Nottinghamshire and Staffordshire, three of the four councils it lost in 2009. The party is pointing to gains in marginal seats such as Harlow, Stevenage and Hastings as proof that is recovering in those areas it needs to win for a majority at the next election. 

The Tories have already lost 66 seats and appear likely to perform worse than forecast, with the party prepared for losses of up to 500.

After a humiliating result in South Shields, the Lib Dems are taking comfort from their performance in their strongholds. In the eight Lib Dem parliamentary seats where the result has been declared, the party is averaging 33 per cent of the vote, with the Tories on 31 per cent, UKIP on 22 per cent and Labour on 11 per cent. In a by-election in Nick Clegg's Sheffield Hallam constituency, the party won the seat on an increased share of the vote, with a 4 per cent swing away from Labour. As in Eastleigh, this is evidence that the Lib Dems are benefiting from an incumbency factor, something that should worry the Tories, who are in second place in 37 of the Lib Dems' 57 seats and who need to capture more than half of those if they are to stand any chance of winning a majority in 2015. 

 

UKIP leader Nigel Farage answers questions from the media as he canvasses for votes in the South Shields by-election. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Lord Sainsbury pulls funding from Progress and other political causes

The longstanding Labour donor will no longer fund party political causes. 

Centrist Labour MPs face a funding gap for their ideas after the longstanding Labour donor Lord Sainsbury announced he will stop financing party political causes.

Sainsbury, who served as a New Labour minister and also donated to the Liberal Democrats, is instead concentrating on charitable causes. 

Lord Sainsbury funded the centrist organisation Progress, dubbed the “original Blairite pressure group”, which was founded in mid Nineties and provided the intellectual underpinnings of New Labour.

The former supermarket boss is understood to still fund Policy Network, an international thinktank headed by New Labour veteran Peter Mandelson.

He has also funded the Remain campaign group Britain Stronger in Europe. The latter reinvented itself as Open Britain after the Leave vote, and has campaigned for a softer Brexit. Its supporters include former Lib Dem leader Nick Clegg and Labour's Chuka Umunna, and it now relies on grassroots funding.

Sainsbury said he wished to “hand the baton on to a new generation of donors” who supported progressive politics. 

Progress director Richard Angell said: “Progress is extremely grateful to Lord Sainsbury for the funding he has provided for over two decades. We always knew it would not last forever.”

The organisation has raised a third of its funding target from other donors, but is now appealing for financial support from Labour supporters. Its aims include “stopping a hard-left take over” of the Labour party and “renewing the ideas of the centre-left”. 

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

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