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Britain’s populist, anti-immigration party Reform UK has beaten Labour by a tiny margin in a by-election, dealing the government a mid-term setback and ruffling the country’s historically resilient two-party hegemony.

Britain's right-wing Reform UK party won a vacant parliamentary seat, two mayoralties and control of several councils on Friday in early results from elections that its leader Nigel Farage said proved it was now the real opposition.