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Lib Dems win in Leicester South

"BLAIR hit by Lib Dem poll surge: A massive Liberal Democrat surge last night took the seat of Leicester South and stopped only inches short of taking Labour's once rock solid seat of Birmingham Hodge Hill." (The Guardian)

"Friday's results are if anything worse for the Conservatives than they are for Blair." (Reuters)

"The Conservatives were pushed into third place in both seats on a dismal night for Michael Howard." (Daily Telegraph)

For more details on the results see here.
And the Lib Dems are now set to challenge in Hartlepool.

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HOME OWNERS WALKING A TIGHTROPE WITHOUT A SAFETY NET - CABLE (05/08/2004)
With a quarter percent rise in interest rates expected later today, Dr Vince Cable MP, Liberal Democrat Shadow Chancellor, criticised the way in which Gordon Brown has failed to clarify new ground rules for the Monetary Policy Committee. “The Governor and his colleagues are having to improvise an interest rate response to ‘bubbling’ house prices and a higher level of household borrowing which are clearly major but not part of their mandate."