THE Liberal Democrats lost a flagship city council because of the damage done by the coalition government, its outgoing leader has said.

Labour snatched ten wards in Newcastle from Nick Cleggs party today out of 25 up for grabs, holding on to just four.

It leaves the Lib Dems with 32 seats overall and Labour with 44.

It is enough to kick the Liberal Democrats out of the office they have held since 2004.

As Labour councillors celebrated their victory, outgoing council leader David Faulkner said: "Labour have taken seats because people are concerned about some recent policies the coalition government has introduced.

"They are concerned about the cuts, concerned for their jobs and concerned that unfortunately we have not been able to convince them that we are separate from the coalition government.

"A lot of people on doorsteps have said that it's with regret that they won't be voting for us because we have done a great job, but they associate us with the coalition government."

Leader of the Newcastle Labour Group was ecstatic with his victory and was cheered on by councillors and MPs on the steps of Newcastle Civic Centre.

He said: "People have told us time and time again that they are fed up with the coalition and its broken promises.

"This is a positive vote for Labour and we are pleased for Newcastle. But it is clear a lot of people have lost trust in the Liberal Democrats.

"This sends a clear message to Mr Clegg and Mr Cameron that people have had enough of the coalition.

"The Lib Dems' priorities are wrong in Newcastle and wrong in Government."

Liberal Democrat candidate Neil Hamilton died at the age of 66 yesterday.

As a result the independent ward of Westerhope will have a by-election on June 16 when Labour are expected to take the seat.

The Labour safe seat of Byker will also have a by-election following the death of Conservative candidate Alice Gingells last week.