LABOUR has suffered a shock defeat in a local by-election in Hackney amid accusations of racism and factionalism against supporters of local MP Diane Abbott.

The Liberal Democrat-turned-Tory Ian Sharer gained a whopping 47.4 points to trounce the ruling party with 53.8 per cent of the vote in Cazenove ward, following a 31.9 per cent turnout.

Labour’s candidate, Laura Pascal, suspended for five days until the night before the vote amid allegations of transphobia on Thursday, placed second after going down 13.1 points to 30.9 per cent.

Hackney Conservative spokesman Simche Steinberger said the result was “a referendum on [low traffic neighbourhoods],” which motivated Mr Sharer’s switch.

The Greens took third place with the Lib Dems coming last.

Camden NEU president Lucie Scott, 54, barred from standing for Labour due to her support for Ms Abbott, told the Morning Star: “A shocking result that highlights the local dissatisfactoin with the behaviour of London region and Hackney Labour.”