The Tories too were downcast, expecting to have done better. They are still just four seats behind Labour, and Geoff Driver remains leader of the council for now.

UKIP's popularity may explain the disappearance of the BNP's only county council seat in the country. Its share of the vote collapsed from 3.5% last time, to 0.7% this time.

So the question is, who can work with who? As the largest party, Labour would have the first chance to form a coalition with the Lib Dems. If they fail, then the way is open for the Tories to give it a go.

Nationally, the parties will also be alert to the county's strategic significance, as the home of nine marginal constituencies.

It is true the big cities have been hit hardest by the cuts. This is partly because they are more reliant than other areas on direct government funding, rather than local council tax payers.

But this warning is likely to fizzle out in Downing Street like a badly primed petrol bomb.

The prime minister has made it abundantly clear that he does not believe last year's riots were politically motivated, or indeed influenced by spending cuts.

David Cameron did want strong, outspoken city mayors. He has found one in Joe Anderson.

But the mass of evidence, disclosures and revelations was enough to get the full apology from David Cameron that the families have wanted desperately for so long.

The prime minister's statement vindicates what Hillsborough families have always claimed: that there was a deliberate police conspiracy to hide their own culpability and a campaign to divert the blame onto the fans.

Amid gasps in the Commons, Mr Cameron revealed that 164 police statements were significantly altered and that criminal checks were done to "impugn the reputations of the deceased".

But the most significant development is whether the original inquests should be reopened.

Today, the prime minister issued a profound apology to the families. It has taken too long. But clearly he did mean it.

Commissioners will have to swear an oath of impartiality. But it is striking that Jane Kennedy sees herself as a potential Labour police commissioner, not a politically neutral one.

She says Labour values will underpin the priorities that she sets the chief constable. He will be hoping her reputation as an effective minister means she knows when to back off.

The danger will come if political strategy impinges on operational independence.

There is plenty of choice across the political spectrum from Left to Right. The major parties, minor parties and independents are well represented.

But there was no clear winner from among the candidates. Certainly the government's dream of a high-profile champion emerging to run the city appears not to have been realised. Whoever wins might well grow into this role. But until then, voters may have to settle for nothing more exciting than competence.

The candidates though must be well aware of the expectations upon them. The audience seemed to want them to create jobs, end the housing shortage and all on a modest salary.

Whoever wins might be wise to start playing down expectations before they enter office.

It is the BNP's first major conference since this summer's leadership election.

Nick Griffin won that by just nine votes, as the party split down the middle.

And the wounds are still festering. Andrew Brons, the party's other MEP who challenged for the leadership, has virtually accused Mr Griffin's side of cheating.

In turn, Nick Griffin accuses his colleague of being bitter and "yesterday's man".

There could well be angry confrontations as members wonder how the BNP has gone from having about 60 councillors in England to fewer than ten.

Just two years ago the party was celebrating unprecedented success at the European elections.

Since then voters have been offered infighting, as well as allegations of financial incompetence.

Mr Griffin had promised to stand down as chairman in 2013 but now says he will continue until at least 2015.

Mr Griffin's position as leader might well be secure but the party's future is far less certain.

The membership ranks behind the chairman are thinning out.

A lot is explained by the scepticism of the families who have felt let down and betrayed by the system on several occasions.

Indeed the Labour MP Andy Burnham, who has done much to support the families, described Hillsborough as "one of the biggest injustices of the 20th Century".

Campaigners lost confidence in the system many years ago.

They wanted a clear commitment that all the documents would be handed to the independent panel and there would be no attempt to block publication.

The Home Secretary, Theresa May, went as far as she could in trying to reassure the families.

They will get unrestricted access to all the documents, even though the panel may redact some of them before wider publication.

MPs and ministers appear to have understood the depth of feeling over the Hillsborough tragedy and sent out a clear signal that it can only be resolved with full disclosure.

Workers may well be shocked, having assumed that the uncertainty of the government's defence review was behind them. But there is a longer-term problem of fewer Typhoons being ordered than expected. BAE is hoping to win new export deals shortly to countries including Malaysia, India, Oman, Saudi Arabia and Japan.

That means BAE cannot afford to lose too many skilled staff, and will probably protect its apprenticeship programme. But, of course, the workforce will fear the worst until the official announcement is made.

The government will then be asked what it can do to mitigate the damage to the economy. These are exactly the kind of jobs and skills that ministers are trying to nurture.

'Huge impact' of BAE job losses

The North West will have 66 seats, compared to 72 at present, it's more if you include all of Cumbria. Only seven are totally untouched.

Across the region there is wholesale change as seats are renamed and redrawn.

MPs are calculating the political ramifications; indeed whether their seats remain at all.

There's been speculation about the Chancellor, George Osborne, whose Tatton constituency in Cheshire is disappearing. But most of it will be preserved as Northwich.

The real casualty is his Tory neighbour, Graham Evans, who finds his seat of Weaver Vale is dismembered.

Part of it becomes Mersey Banks, a proposed constituency of two parts divided by the River Mersey.

Two "cross-county" seats are being proposed for Greater Manchester, one incorporating part of Lancashire, the other part of Cheshire.

Salford will be totally broken-up with part of the city represented by neighbouring Manchester Central.

In Cumbria, there could be a high-profile fight for control of Kendal and Penrith between Lib Dem MP Tim Farron and Tory MP Rory Stewart.

The new constituency jigsaw might be fairer but voters may find their political identity is loosened.

But on Tuesday the Labour chairman of the Greater Manchester Fire Authority, Fred Walker, announced he would be stepping down after a row over his travel costs.

It's revealing to consider how differently the Labour Party has dealt with similar problems in Manchester and Liverpool.

Let's start with Mr Walker. He put in a travel claim for £20,000 for the period April 2008 to October 2010.

Mr Walker displayed an expensive taste for first class rail travel and the bill racked up.

His explanation to his local paper, the Leigh Reporter, probably didn't help: "Originally I wasn't going to claim this money.

"But a colleague felt this would be unfair on others who might have felt pressure to follow my example but might not have been able to afford it...

"These figures... include 6,000 miles travelled in my Mercedes..."

By means of comparison, his predecessor as chairman, Lib Dem councillor Paul Shannon, claimed £428 for the whole of 2010.

Undoubtedly Mr Walker mishandled things.

To his critics he appeared greedy and displayed an arrogance suggesting he could do this without any significant consequences.

Claiming for two-and-a-half years of travel in one go made the total figure particularly prominent.

But there was no suggestion that Mr Walker claimed for anything he was not entitled to.

In fact, he led for Labour nationally on fire issues at the Local Government Association and frequently travelled to London.

Compare this to Merseytravel, the public transport authority for Merseyside, also run by Labour.

As I've reported before, Merseytravel has institutional problems.

It's the only local authority where councillors set their own allowances, and very generous they are too.

Thirteen Labour councillors share out 31 paid posts between them.

Merseytravel has finally announced an independent review of the system. But one wonders why its chairman, Mark Dowd, has not sorted this out years ago.

Meanwhile questions have been raised about his own expenses. Why has he been regularly attending the annual Labour party conference on expenses?

He's consistently refused to discuss any of this, but Merseytravel has defended the arrangement saying he was lobbying on behalf of the organisation.

Maybe he was, but surely as a Labour politician he would want to financially support his own party?

Also, this will be the first year he attends the Conservative party conference and he has never attended the Lib Dem conference, even though it was held in Liverpool last year.

This hardly smacks of competent lobbying.

So those are the issues. Now consider Labour's response.

There are six councils in the Merseytravel area, all are Labour-led.

There is very little public, or even private, criticism of Mr Dowd.

The predictable response is to keep quiet and wait for the storm to blow over. Now compare to Greater Manchester. The fire authority covers 10 council areas, eight of which are Labour-controlled.

As soon as the problems emerged, the Labour leaders decided to take concerted action. They privately told Mr Walker he would have to quit. And those Labour leaders threatened to make their opposition public if he refused.

It's one thing to withstand political attacks from your enemies, but quite another when your own side turns on you.

But by taking this action, Labour in Greater Manchester is demonstrating a commitment to modern, transparent local government.

It's saying that the old ways of running councils and local authorities are over. And that sends out a powerful message about the region.

It's a message many on Merseyside, it appears, are yet to understand.

Merseytravel is the authority which co-ordinates public transport across Merseyside.

It is the only local authority in the country where councillors still set their own allowances.

Not only that but councillors claim multiple allowances depending on how many committees they sit on, rather than one overall payment.

Professor Jon Tonge, head of politics at Liverpool University, says that's unique: "You or I might like that in our jobs, but it just isn't the reality in any other walk of life."

The Liberal Democrats are running a concerted campaign to reduce what they consider to be a blatant milking of the system.

In June we reported on how Merseytravel voted to increase their allowances a little more.

A new post was created of deputy chair of the women's forum, paying out a further £3,688.

It means there are a total of 35 posts. Thirty one of those are shared between 13 Labour councillors.

Allowances alone, that's without expenses, come to just over a quarter of a million pounds.

The chairman, Labour Cllr Mark Dowd, claimed £47,665 in allowances last year. That's for chairing several different committees.

He has consistently refused to discuss the arrangements but his office insists it's a full time job.

However things appear to be changing.

On Wednesday Liverpool councillors voted to recommend accepting only one special allowance from Merseytravel, plus the basic.

That decision is not binding.

But the Deputy Chairman of Merseytravel, Cllr Alan Dean, has told me he expects all five Labour councillors in Liverpool will accept that.

He previously told me: "Eighteen months ago we decided the system wasn't appropriate and we needed to do something about it."

He thinks the Lib Dems are being mischievous by suggesting Labour is opposed to reform. But it's certainly taken some time.

The Lib Dem Leader on the Transport Authority, Cllr Andrew Makinson, has been pushing for reform: "There are many people across Merseyside who would be grateful for just one job.

"Labour Councillors in Liverpool have been forced to face the public anger at their allowances scandal, and have finally been shamed into taking action."

The Lib Dems claim the move will save about £25,000 in allowances.

It is now for councillors in Sefton, Knowsley, Wirral and St Helens to decide if they're travelling in the same direction.

Unusually both men are from the same county, Lancashire - Lindsay Hoyle, Labour MP for Chorley, and Nigel Evans, Conservative MP for Ribble Valley.

Both men were newly elected to these posts after the 2010 general election.

Their job is to deputise for the Speaker, John Bercow.

It means keeping MPs in order and ensuring the smooth running of debates in the chamber.

Both men are popular "personality" MPs. But they had reputations for being combative and tribal.

So their political lives have had to change dramatically.

Now they have to maintain political independence and party neutrality as they seek to maintain the confidence of all parties in Parliament.

Those days of speaking out on the latest political controversies are gone.

But it's not quite so simple in the North West. And since the region is a key general election battleground, the national parties should be taking note.

It's certainly true that the Lib Dems had a terrible election night.

I was in Liverpool, where it soon became clear that the party's worst fears were to be realised.

The party was defending 13 seats and ultimately lost 11.

In Manchester they were defending 11 and lost them all.

There were similarly poor performances in places including Cheshire East, Oldham, Rochdale, St Helens and Wirral.

But although the party lost control of Stockport, there was no meltdown there and the Lib Dems remain by far the largest group.

They also proved remarkably resilient in Burnley and South Lakeland.

But taken as a whole it was little short of a disaster. The Liberal Democrats lost a third of their seats. They now have the fewest number of councillors here for 15 years.

In Liverpool they had tried to distance themselves from the national party. In Manchester they had been overtly loyal. Neither approach worked.

But the idea that voters were simply punishing the Liberal Democrats is wrong.

The reason the Tories lost no councillors in Liverpool and Manchester is because they had none to begin with.

But elsewhere the Conservatives also had a bad night.

David Cameron lost four councils in the North West.

This year he could enjoy no celebratory visit to Blackpool, Bury, Rossendale or High Peak.

He can longer take pride in controlling more North West councils than the other two parties combined.

So what happened?

There's little doubt that the central issue for voters was spending cuts and their profound impact on the North West.

Some senior Liberal Democrat and Conservative councillors warned the cuts were too deep and too quick.

They were almost universally ignored.

The government's priority remained cutting the deficit, and that meant focusing on the most expensive councils.

But the most expensive councils in the region are also the ones with the greatest challenges. Millions of pounds of financial support for poorer areas has simply been wiped away.

The government imposed financial cuts and the electorate responded with political cuts.

But there is no point in the Liberal Democrats pretending this was purely a Tory policy. Lib Dems were just as quick to attack Labour councils for wasteful spending.

Few doubt there must be inefficiencies in local government. But on the whole, the electorate did not buy the government's rhetoric.

It is also worth noting that many councillors who defected from the Liberal Democrats and stood as independents were cut down in favour of Labour candidates.

Defection did not save their political lives.

Labour capitalised very successfully in the North West.

The party gained nine North West councils, more than a third of the national total.

It has clearly re-established itself locally as the most powerful political force in the North West.

But if so many gains were made here, it's a reminder that relatively few were made elsewhere.

Also, turnout was quite low in places.

Just 20% bothered to vote in Manchester. That's hardly a ringing endorsement of Labour.

Professor Jon Tonge from Liverpool University tells me that half of Liberal Democrat voters switched to Labour, the other half simply stayed at home.

It has been a memorable election for Labour but there's still plenty of work to do.

And the Lib Dems and Tories would be wise to remember they need to maintain support in the region too.

In a day of celebration, Mr Cameron visited councils including Chester, Blackpool and High Peak.

All three were symbolic gains for the Tories and represented the party's rediscovered success in the North.

Four years on, those same seats and councils are again up for election. But this time expectations are very different.

The Conservatives control more councils than Labour and the Liberal Democrats combined.

But that also means they have more to lose.

2011 is a much sterner test for the Tories.

The party is fighting to maintain control of councils including Chorley, Rossendale and West Lancashire.

They unexpectedly lost a majority in Bury last year, partly due to the higher turnout at the general election.

But the Tories maintain minority control and have introduced a controversial plan to review all services with the possibility of some privatisation.

How will that affect the Tory plan to win Bury back?

Of course, the cuts to council services will be a dominant theme.

We have already seen some of the anger that the severe cuts introduced by the coalition government have provoked.

But this is also an opportunity for the supporters of the cuts programme to make their voices heard at the ballot box.

Even though the Conservatives are fighting from a strong electoral base, most councils in the region are under No Overall Control: in other words no party has a majority.

That's largely because Labour lost them in recent years. Now there's a chance to win them back.

Labour would be hopeful of taking Blackburn, Bolton, Burnley, Hyndburn, Oldham and Warrington.

Rochdale and Wirral are more distant possibilities.

And, of course, Labour would love to win Blackpool back.

As for the Liberal Democrats, they had a poor result in 2007.

That may prove a blessing if it disguises the extent of expected losses in May.

In fact, the party only runs two councils in the North West - Stockport and the South Lakes.

Both look safe, unlike so many individual councillors.

The threat to the Liberal Democrats is an opportunity for the smaller parties. Protest voters are hardly going to vote for Nick Clegg.

But maybe they will turn to the Greens instead.

UKIP is also poised to prosper. The party tells me that it is fielding a record number of candidates in the North West, about 165.

UKIP might also benefit from recent splits within the British National Party.

The BNP appears to be a much weakened electoral force, only standing about 50 council candidates.

I'm often asked whether people vote on national or local issues. On this occasion the two coincide, with the cuts agenda dominating national and local politics.

People in the North West will be deciding who they most trust to see that difficult programme through.

You will see from my previous post that he had upset some colleagues and Lib Dem HQ by strongly speaking out against the coalition.

But it does not explain his decision to quit.

This appears to have been prompted by the odd situation over whether his son Daniel planned to stand as a candidate in the forthcoming local elections or not.

The allegation - strongly denied by Mr Bradley - is that he committed election fraud. I understand this has been reported by Labour to Merseyside Police.

Daniel has spoken to the Liverpool Daily Post this morning.

The claim is that Mr Bradley falsely witnessed Daniel's nomination papers which his son knew nothing about.

But in a final e-mail as leader to colleagues Mr Bradley hit back:

"I have today been accused by the media of putting my son's name forward to stand for election, without his knowledge, and then to underline my intention I spoke to the press as if to reaffirm the fraud.

"I cannot say too much at this stage for obvious reasons, but to inform you, I totally deny this allegation and am seeking legal advice to that end."

Warren Bradley, who plans to continue as a councillor in the city, goes on to explain some of his reasons for resigning and criticises some unnamed colleagues:

"Although I fully intended to stand down this May to pursue my fire service career, I will be with immediate effect standing down as the Leader of the City Council Liberal Democrat Group (hooray I hear from some); lots of things have happened during my six year tenure, mostly positive with lots of support from the majority of members, but sadly there have been people who have continuously undermined me in the position, something which has been extremely illiberal, something I am not used to, and something I understand that has driven them to help with what they have today, sadly involving my son.

"In conclusion, people's private lives should remain just that, unfortunately some senior members in our Group do not feel the same.

"Can I give a gentle prod to whoever succeeds me in the position to ensure they have the total support of the majority of the Group, without that, life will also become as miserable for you."

Mr Bradley, who was council leader for six years, is scathing about the coalition and predicts big losses for the party in May's elections.

He urges the party to leave government and sever ties with the Conservatives.

The e-mail from Warren Bradley to Nick Clegg is reproduced in full below:

Date: Sat, 9 Apr 2011 11:52:46

Subject: LABOUR'S SURGE IN THE NORTH

IN CONFIDENCE - PRIVATE

Dear Nick and the Parliamentarians,

I have to date kept my frustrations and criticisms based on policy rather than just having a go because I don't want to be in bed with the Tories; unfortunately the boil is about to come to a head and burst (probably on election night) when we lose some very well respected and experienced colleagues from Liverpool City Council.

The Labour and Trade Union movement are saturating the streets of Liverpool, even in our heartlands.

Liberalism started in Liverpool (Church Ward) during the late 60's with Sir Trevor Jones and Cyril Carr being the driving force; a ward we have held for many years through thick and thin, sadly this year, because of your actions in Coalition Government, this may not be the case. Never before in 35+ years have I seen the streets of Wavertree snooing with Labour activists, never before have I seen Labour posters in a local election.

This is only down to the policies that our Parliamentarians are pursuing in Coalition Government.

The position is untenable, Mike Storey having given many decades to the party is extremely vulnerable, and could well fall because of the Parliamentary party.

Many other long serving Councillors could be defeated not because of their record, but because of your record and the perception of what we as Liberal Democrats now are.

I only hope on the 6th May, you will meet with Leaders/Groups/ordinary members and seek their views following a set of results, which if mirrored by our canvass returns will place us back 40 years.

I and many of my colleagues in Liverpool and the North are tired of defending the indefensible, as a party we have to reconsider what and who we are before we disappear into the annuls of history as a political party who promised so much hope, yet failed because they wanted control and power.

This is not a moan because I want to be someone, I deeply care about the party I have campaigned for since its inception, as I did for the Liberals before when I was a little boy, as did both my parents and virtually all my family; Liverpool and the North needs and deserves an alternative to Labour, but at present, after knocking on many doors, all I feel is dejection and upset that the Lib Dems, the party the people trusted implicitly have become like the others and deserted their followers.

I hope you take this in the spirit it is meant, liberal principles have to shine through, we have to be independent and we have to sever ties from the coalition; if we fail to do this, we have only our Parliamentarians to blame.

Yours sincerely

Cllr. Warren Bradley

Leader of the Liberal Democrats

Liverpool City Council

Until last year this was a flagship Northern council for the party.

Now, with less than a month to go until local elections, it's hard not to conclude the party is close to falling apart.

This week North West Tonight revealed an extraordinary e-mail from Warren Bradley, the leader of the Lib Dem group, to Nick Clegg.

Mr Bradley, who was council leader for six years, is scathing about the coalition and predicts big losses for the party in May.

He urges the party to leave government and sever ties with the Conservatives.

Almost certainly Councillor Bradley is reflecting the views of many voters in Liverpool.

There have been deep cuts to the council's budget, not to mention the scrapping of Building Schools for the Future and housing regeneration cash.

Mr Bradley must be hoping the local party benefits from distancing itself from national government.

Perhaps this might assuage any disappointment he feels after his "private" e-mail to Nick Clegg was leaked.

Certainly when I interviewed Mr Bradley this week, he had no intention of backing down.

There are almost certainly many voters who will agree with him. But what are they likely to do?

Perhaps they will admire this independence and vote for the local party.

But I can't think of any examples where parties have won votes by exposing internal division.

The danger is that voters who agree with Warren Bradley will simply come to the conclusion that the party's not worth voting for.

The pressure of government has affected the party regionally in different ways.

There have been defections in councils including Halton, Rochdale, Liverpool, Manchester and Stockport.

Other Lib Dems feel it's better to passionately argue their case.

This group includes several of Mr Bradley's colleagues who are furious that internal divisions have been exposed in this way.

But perhaps none does it better than the Party President and MP for Westmorland and Lonsdale, Tim Farron.

And this is what Nick Clegg had to say to me when I interviewed him about his response to the e-mail:

You can read the e-mail from Warren Bradley, the leader of the Lib Dem group, to Nick Clegg here.

With 72 MPs and 37 councils, there's no shortage of politics in the North West.

So this page is a chance to keep you informed about political developments in the region and allow you to comment. I look forward to hearing your thoughts.