Labour has slumped to a disastrous fourth place in the first Commons by-election of the new millennium.

Plaid Cymru's Simon Thomas easily defended his party's Ceredigion seat in west Wales, polling 10,716 votes from a turnout of 46%.

The battle for second place was won by Liberal Democrat candidate Mark Williams who polled 5,768.

The Tories' Paul Davies took third place with 4,138 and Labour's Maria Battle trailed into fourth place with 3,612.

The result was attributed by some at the count to widespread dissatisfaction against the government from the farming community.

The new MP told jubilant supporters that his party had won on "fair play" policies - "fair play for the farmers, public services and, particularly, the National Health Service".

A victorious Mr Thomas, 36, who will be the first male MP in living memory to wear an earring when he goes to Westminster next week, said: "In the very week that we found out that many of our rural areas were poorer than urban areas, the Labour Party turned its back on Ceredigion.

"This victory is a vote of confidence in the future of Wales. We go forward from here."

The rural community development manager said the result sent a "clear message" to Labour.

"We did marvellously well here," he told BBC News 24.

"We improved on our general election figure while Labour slumped horribly."

'Timely shot'

The result was also a boost for the Liberal Democrats, who had held the seat for most of the last century until their shock defeat by Plaid in 1992.

They regained the second place they lost in 1997.

Mr Williams said his party was "delighted" to almost double its vote share and move from fourth to second place.

He declared: "The message from Ceredigion is clear - Liberal Democrats are back in town."

Liberal Democrat leader Charles Kennedy said: "This is a spectacular result. It demonstrates we are on course to make substantial gains at the next general election.

"It is a timely shot across Labour's bows when the government is doing less than it promised for public services and rural areas."

Tory Party chairman Michael Ancram hailed his party's third place as "a good result for the Conservative Party and a great endorsement for William Hague's leadership, our common sense revolution and the new shadow cabinet.

"This by-election has shown that the people of Wales are fed up with Labour being all talk but no delivery."

Labour defiant

Ms Battle, clearly disappointed after fighting an energetic campaign, hit back at claims that the government had been holding back money to match European funding earmarked for Wales.

She said it was the Labour Government that got European Objective One status for Wales.

"If people find the right schemes then the Labour Government will find the matching funding," she said.

The by-election in Ceredigion was called after the sitting Plaid Cymru MP, Cynog Dafis, who polled 16,728 at the general election, resigned from the Commons to concentrate on his other role as an Assembly member for Mid and West Wales.

The poll is the first of several election tests facing the government this year.

On March 16 there is a Scottish Parliament by-election at Ayr where Labour pipped the Tories by just 25 votes in last year's voting.

Then, on May 4, there are the polls for the London Mayor and Assembly and more than 150 English councils.