Labour MPs openly questioned Gordon Brown's future today after the party was battered into fifth place behind the far-Right BNP in the Henley by-election.

The ignominy of losing to the extremist fringe prompted an outpouring of bitterness on the day Mr Brown notched up his first anniversary in office.

Mr Brown headed for Manchester for meetings with police, Olympic cyclists and students and intended to say nothing about the by-election or his 12-month anniversary. The Cabinet Office issued a 50-page report on new reforms, including greater use of the private sector and charities to deliver free services, to show the Government had not run out of steam.

But the mood among backbenchers was angry. Blyth Valley MP Ronnie Campbell said: "It's a bad day when the BNP can beat Labour. It sticks in my craw. I don't like to back losers and he's a loser at the minute."

Stroud MP David Drew said: "There's no point doing the job when you are not enjoying it and it's all too hard. He's got to look at himself. He's got to make that decision."

Ealing North MP Stephen Pound spoke up for Mr Brown but admitted: "My first reaction [to the Henley by-election] was to head to the library with the glass of whisky and a revolver." Chorley MP Lindsay Hoyle said: "It's a disastrous result. We have got to question where we are when the BNP push us into fifth place."

Olympics Minister Tessa Jowell admitted she "felt sick" at losing to the BNP, but that Mr Brown was "strong and principled".

This afternoon Equalities Minister Harriet Harman was being blamed. Party insiders said she gaffed by unveiling her Equalities Bill, to promote women and ethnic minorities in the workplace, on voting day. It may have handed a crucial few votes to the BNP. She was also criticised for a boring "positive" campaign that was so lowprofile that Labour supporters did not bother to turn out.

Although Labour never expected to do better than third place in Boris Johnson's old seat in Oxfordshire, the defeat was far worse than expected.

Candidate Richard McKenzie scraped together 1,066 votes, down from 7,000 in 2005, lost his deposit, and trailed behind the Greens who made 1,321 and the BNP's 1,243. He narrowly escaped sixth place, being just 200 votes ahead of Ukip. As expected, Conservative John Howell cruised to victory with 19,796 votes and a fat majority of 10,116 over Liberal Democrat Stephen Kearney's 9,680.

It is the first time since 1984 that the Tories did so well in a by-election seat where the Lib-Dems started in second place.

Veteran Labour Left-winger Tam Dalyell launched an attack on Mr Brown's Cabinet team, calling them "young, rather arrogant, inexperienced, bumptious ministers". He named Ed Balls, James Purnell, Andy Burnham and Yvette Cooper. A new poll found almost two in three voters now believe the Prime Minister is a "liability" for Labour. Just 16 per cent think he can win an election. The survey by YouGov for the Telegraph gave the Conservatives a huge 18-point lead, on 46 per cent to 28 per cent, with the Lib-Dems on 15.

Health Minister Ben Bradshaw defended Mr Brown, saying: "The virulent personal abuse he is facing from many of the commentariat is completely irrational. He is a warm, engaging decent man of principle in private." A survey for the BBC of grassroots Labour members found they want Mr Brown to move closer to the trade unions and away from big business. Three-quarters backed him as the "right person to lead Labour to victory".

Downing Street aides dismissed the Henley-result as meaningless, saying Labour spent barely £10,000 on the campaign. There is talk of a cabinet reshuffle in September - though this is played down by No 10 insiders - and a new economic plan to act as a springboard for another relaunch before the party conferences.

It also emerged today that Mr Brown is speaking occasionally to senior Blairite Labour MPs. He consulted former Health Secretary Alan Milburn before making a speech on social mobility on Monday. "It is not unusual. He calls MPs from time to time to discuss speeches and what he intends to say, asking how they think he should express ideas."

Although the insider warned not to "read too much into it", the disclosure is bound to fuel speculation that more senior Blairites might be asked to join the Government in the next reshuffle. Tony Blair appeared to suggest Mr Brown's emphasis on "long-term decisions" might put off voters. Writing about climate change, he said: "Politicians who think only of the long term and ignore immediate public concerns may find themselves in office for the short term - and replaced by those without their vision."

Attention switched today to the by-election forced by former shadow home secretary David Davis, who launched his campaign in Haltemprice and Howden with "10 policies to protect British freedom". Mr Davis put reversing the 42-day pre-charge detention plans at the top of his list.

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