Rishi Sunak has been hit by a string of defeats in the last big test of public opinion before a general election.
Labour is gaining seats across England in local elections and took Blackpool South in a Westminster by-election.
Mr Sunak had been braced for a bad night but the loss of key councils and a big swing to Labour in Blackpool will put fresh pressure on his leadership.
Many more results are still to come - with only about a third of 107 councils declared so far.
The Conservatives are hoping Tees Valley mayor Lord Ben Houchen will retain his position, with the result expected after mid-day. Most other mayoral results - including London, where Labour's Sadiq Khan is aiming to win a third term - will come on Saturday.
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Labour leader Sir Keir Starmer said the Blackpool result - a massive 26% swing to Labour - sent "a direct message" to Rishi Sunak from voters that "we want change".
He said: "That wasn't just a little message, that wasn't just a murmur, that was a shout from Blackpool - we want change.
"And Blackpool speaks for the whole country - it's saying that we've had enough now."
Conservative MP Paul Scully told LBC the results so far were "pretty horrendous" and the party needed to "suck that up, take it on the chin, be humble" and "admit the fact we need to create a vision over the next few months ahead of a general election".
MP Dame Andrea Jenkyns, a longstanding critic of Mr Sunak, urged him to listen to the electorate and change course, saying the party needed to "wake up, be conservative, or we lose".
Conservative Party chairman Richard Holden described the local election results so far as "disappointing" and said his party needed to start talking about their successes and "vision for the future".
Despite a general election expected to be called in the next six months or so, he told BBC Breakfast: "Overall a disappointing night for us but that's what you'd expect from parties in midterm of government."
Labour will be pleased to have regained control of key council targets Hartlepool, Thurrock, Rushmoor and Redditch - areas where they are aiming to win at the general election later this year.
But, there is evidence in areas with a significant Muslim population that Labour's stance on Gaza is hurting the party.
In Oldham, where two Labour councillors quit the party over Gaza earlier this year, Labour lost control of the council.
Labour MP Pat McFadden, the party's national campaign coordinator, admitted "strong feelings" around the Middle East were "a factor" in the losses, adding: "I don't think there's any point denying that - it does get raised".
Reform UK is doing well in the areas where it has fielded candidates - and nearly beat the Tories into second place in Blackpool South.
Reform leader Richard Tice said the results showed his party "is rapidly becoming the real opposition to Labour".
The Green Party is also performing well and heading for a record number of councillors. The Liberal Democrats have made modest gains so far.
The by-election in Blackpool South was triggered by the resignation of former Conservative MP Scott Benton, who was suspended from the party after being caught in a lobbying sting.
Labour candidate Chris Webb overturned a majority of 3,690 to defeat Conservative David Jones in the constituency, which was previously held by Labour from 1997 to 2019.
The swing of 26% from the Tories to Labour was the third biggest in a by-election since 1945.
Overall, it was a bad night for the Conservatives, who lost more than 120 council seats and control of three councils, while Labour gained 52 council seats.
Elections expert Prof Sir John Curtice said the Tories could be on course to lose 500 councillors in "one of the worst, if not the worst" performances by the party in 40 years.
The last time these seats were fought was in 2021, when the Tories benefited from the success of the UK's vaccine rollout.
The party is still hoping to hold on in mayoral elections in Tees Valley and the West Midlands, where results are expected on Friday and Saturday.
There are nine other mayoral contests taking place - including in London, Greater Manchester and Liverpool City Region.
The East Midlands, the North East, and York and North Yorkshire are also electing mayors for the first time.
Elsewhere, 37 police and crime commissioners are being elected in England and Wales.
Votes are still being counted in the majority of councils, with the final declarations not expected until Sunday.
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2024-05-03 10:06:30Z
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