The Labour leader of Burnley Council lost his seat in a bad night for his party in the town, which left the authority with no overall control.
The Tories won Chorley Council
The Liberal Democrats, who gained five seats, could now form an administration with the Conservatives to push Labour out of administration.
Labour lost five seats in the Burnley poll, including leader Stuart Caddy, while the BNP gained one seat overall.
"I'm not disillusioned - I'll just get on with life," said Mr Caddy.
Elsewhere in Lancashire, the BNP won a seat on Pendle council, while the Lib Dems are celebrating the election of the first Asian woman to the council.
Brian Parker, who polled 417, beat Labour's Dorothy Ormrod by 80 votes to win Marsden Ward.
The Brierfield ward was won by Naseen Shadnum for the Liberal Democrats.
England First, which describes itself as nationalist, won two seats on Blackburn with Darwen unitary authority where Labour kept control.
The Conservative party celebrated winning its target council Chorley by scooping five seats - it took four from Labour and one from the Lib Dems.
Before polling day, no party had overall control of the council although Labour had been the largest single party with 21 seats.
The Tories increased their control of Hyndburn and West Lancashire councils.
The biggest shock in Hyndburn was defeat of Labour Councillor Tim O'Kane by the controversial independent candidate Nick Collingridge, who had to resign from a community group after being cautioned by police for singing racist songs at a Christmas party.
While in Preston the political stalemate remained with no party having overall control but Labour were still the largest party.
The closest contest was in the city centre ward, where former MP Ron Atkins, who is 90 next month, held on by seven votes from Respect.
Rossendale Borough Council remained in the control of the Conservatives, with the party gaining two seats.
The Rossendale and Burnley counts took place on Friday.