The party lost two of the nine seats up for grabs, with the Independents – the big winners of the evening – gaining two.

The results have been hailed as the beginning of the end of Labour's stranglehold on power in the council chamber.

South Shields businessman Ahmed Khan was triumphant in the Beacon and Bents ward, where he emerged with a majority of more than 400, after seeing off a challenge from Labour's John Wood.

It was sweet revenge for Coun Khan after he lost the ward by just 33 votes in last year's Local Elections.

He said: "I feel like all the hard work and effort of the last two years has been worthwhile. The people of Beacon and Bents have put their faith in me and I aim to repay them."

In the closest-run contest of the night, veteran Progressive councillor Jim Capstick managed to hang on to his seat in Harton after a recount.

He fought off a strong challenge from Labour's Neil Maxwell to take the seat by just three votes.

Coun Capstick predicted the events of the evening marked a new era in politics locally, adding: "I am happy to be part of that era for the next four years."

The "comeback kid" of the evening proved to be Coun Gordon Finch, who took Horsley Hill for the Independents after another recount.

Coun Finch lost his seat in the Harton ward last year while standing as a Progressive candidate.

He said: "I had a good feeling as I was going around the doors – people didn't want to vote Labour."

One of the few bright spots of an other wise depressing evening for Labour was Coun Ed Malcolm's overwhelming victory in Simonside and Rekendyke.

Coun Malcolm believes issues nationally may have impacted on the party's poor showing in the town, but added: "We didn't encounter disaffection on the doorstep."

Coun Jane Branley, leader of the Independents, was ebullient after her party's positive showing.

She helped form the Independent/Progressive Alliance two years ago, with the aim of creating a real opposition to Labour in the borough.

Coun Branley said "We want to talk to people, to actually listen to what they have to say.

"The Independents elected tonight are all positive people, and these results are a beacon of hope to the people of the borough."

Another big winner for the Independents was Coun Allen Branley, who romped home to victory with a majority of more than 1,200 in the Westoe ward.

At the end of the evening the Independents had won four seats, Labour two and the Progressives had retained their two seats.

Once again the BNP failed to pick up a single seat in the town.