Liberal Democrats leader Charles Kennedy has described his party's showing in the Ceredigion by-election as "spectacular" after almost doubling their vote.

Plaid Cymru held onto the Welsh-speaking rural seat gaining 10,716 votes.

Liberal Democrat candidate Mark Williams ganed support from 5,768.

His party had held the seat for most of the last century until their shock defeat by Plaid in 1992.

They shot back into the second place they lost in 1997 with Mark Williams pulling in 5768 votes.

Mr Williams called it an "encouraging result" saying it put the party on line to win the seat back.

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

But Liberal Democrat leader Mr Kennedy went further calling it "a spectacular result".

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

Labour's candidate Maria 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 from the platform at the count in Aberaeron that 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.

Tony Blair played down Labour's poor showing saying it was not a seat held by the party at the General Election.

He denied that the Government had lost the support and trust of people in the countryside.

The Prime Minister said the Government was ensuring a stable economy, investment in public services, better schools and hospitals and better rural schools.

He said those policies would benefit rural areas.

Nick Bourne, Welsh Conservative leader in the Assembly, said the Welsh Tories were delighted by the party's improved showing in Ceredigion after coming fifth and fourth in the General and Assembly elections.

"It is a good bedrock for our vote in the next election," he said.

He added that it was a "devastating" result for Labour, given their resources and efforts in the seat.

Tory Party chairman Michael Ancram said called the result an endorsement for William Hague's leadership.

"This result is a significant improvement on our performance at the last general election and shows that the Conservative Party is now on the road to recovery in Wales and ready to win the next general election," he said.

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

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