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Labor claimed a majority victory in the Blackpool South by-election, with candidate Chris Webb receiving 10,825 votes.
The seat was previously held by Conservative Scott Benton, who resigned following a lobbying scandal.
Tory David Jones came second with 3,218 votes, just 117 votes ahead of Reform UK’s Mark Butcher.
The 26.33% swing was the third largest swing from Conservative to Labor in a by-election since the Second World War.
It comes as Labor has achieved significant wins in local elections across England, and pressure is mounting on Rishi Sunak as the general election approaches.
Sir Keir Starmer said: “This dramatic victory at Blackpool South is the most important result of the day.
“This is the only contest in which voters have had the opportunity to send a direct message to Rishi Sunak’s Conservative Party, and that message is an overwhelming vote for change.
“The swing towards Labor in Blackpool South is truly historic and shows we are firmly back in the service of working people.”
Chris Webb, the new councilor for Blackpool South, said: “Blackpool has had enough of this failing government.”
“People no longer trust the Conservative Party. Prime Minister, please do the right thing, admit your failures and call a general election.”
The result means the Conservative Party has lost 11 by-elections since the 2019 general election.
Four of the incidents occurred during Boris Johnson’s time as prime minister, while the remaining seven all occurred during Rishi Sunak’s time as prime minister.
This is the worst record for a government in a single parliament since Harold Wilson’s Labor government of 1966-70, when it recorded 15 defeats in by-elections.
Election expert Professor Sir John Curtis said: “The only thing that stopped this result from being essentially an unmitigated disaster for the Conservatives was the fact that they had a narrow lead over the Reformers. It was,” he said.
He added: “Fundamentally, Rishi Sunak’s project of closing the gap with Labor is yet to deliver any tangible benefits.”
This is breaking news and will be updated soon