Willie Rennie addressed about 500 party members at the hustings

He said the by-election involved "local issues with national significance" and Labour "aren't listening" to people.

He was speaking at the Liberal Democrat hustings where the three leadership candidates addressed party members.

Mr Rennie overcame an 11,000 Labour majority to win the seat in Dunfermline and West Fife by 1,800 votes.

He dismissed Tessa Jowell's argument that the result held no real national significance but was on the basis of local issues.

I think all three are fantastic candidates and there is a great supply of quality within the party Willie Rennie

"I think everyone is pretty shocked at the moment. The Labour Party always like to blame someone else and never accept responsibility for themselves," Mr Rennie told about 500 party members.

"The fact that Gordon Brown is hiding away in Moscow and Tony Blair won't speak about the defeat - that shows they haven't learned the lessons of this defeat and shows that Labour aren't listening.

"This was a national campaign and a test of the national mood. What it showed is that there is massive distrust in the Labour Party and it was rejected on that basis."

Leadership

At the hustings in Slough, Berkshire, the three Liberal Democrat leadership candidates outlined their stances to supporters.

Mr Rennie remained tight-lipped regarding his choice for the new leader of his party.

"I think all three are fantastic candidates and there is a great supply of quality within the party," he said.

The three leadership candidates addressed party members in Slough

"What we have got to have is people who can speak on the national stage and communicate with people in the country and highlight our activities on a local basis as well."

The three leadership hopefuls were keen to build on the Dunfermline success.

Acting party leader Sir Menzies Campbell said Mr Rennie would be a great addition to "the brightest and best men and women of a new generation in the House of Commons", a group who their leader should help to flourish and express ideas.

And Chris Huhne joked that he was "particularly pleased that Gordon Brown now has a Liberal Democrat MP - because next time he has problems with tax credits or the Child Support Agency he knows where to go to get them sorted out".

Meanwhile, Simon Hughes said: "In Dunfermline we showed we could take on Labour in its heartland and look how fantastically we did."