The Conservatives held on to Eastbourne with a sharply reduced majority over the Liberal Democrats.

Sitting Tory MP Nigel Waterson held off a strong Lib Dem challenge from Stephen Lloyd to be returned to Parliament at 3.30am today.

But victory came at a price. Mr Waterson's majority of 2,154 from the 2001 election was shaved to 1,124.

The result left Lib Dem supporters clearly dejected. Mr Lloyd had fought hard for the past three years to end 13 years of Conservative rule in Eastbourne.

They had sent down some of their leading luminaries ahead of polling day and marked the town as their eighth most winnable seat nationwide.

Mr Waterson gained 21,033 votes, ahead of Mr Lloyd's 19,909 and comfortably ahead of third-placed Labour challenger Andrew Jones.

Amid scenes of jubilation a beaming Mr Waterson pledged to dedicate another five years to making Eastbourne a better place.

He paid tribute to his supporters and his family. He also praised his challengers for a robust but fair campaign and said: "Most of all I would like to thank the people of Eastbourne for doing me the honour of re-electing me as their Member of Parliament and I am thoroughly looking forward to spending my time fighting for them."

Mr Lloyd praised his supporters and activists, particularly his agent Chris Keating who he said had run a remarkable campaign.

He offered his congratulations to Mr Waterson and told the King's Centre audience: "I wish him well."

By all accounts the contest turned out as expected - a straight battle between Tories and Lib Dems. Labour 's Andrew Jones picked up 5,268 votes.

UKIP candidate Andrew Meggs and the Green Party's Clive Gross did their best to gain votes from people disillusioned with the main parties.

Key election issues included problems at Eastbourne District General Hospital where bed-blocking hit massive levels during the campaign.

Elected: Nigel Waterson (C) 21,033.

Not elected: Stephen Lloyd (LD) 19,909, Andrew Jones (L) 5,268, Andrew Meggs (UKIP) 1,233, Clive Gross (G) 949 Turnout: 65 per cent.

Majority: 1,124.