ENGLISH apathy last night produced one of the lowest recorded votes in local government elections, with a drop in Labour support, significant losses for the Liberal Democrats, and the first, hesitant signs of a recovery for the Conservatives.

A turn-out put at just 26% - barely a quarter of those eligible to vote in the first electoral test of the Government's popularity - sparked fears for the democratic process south of the Border.

Deputy Prime Minister John Prescott promised reforms to improve voter participation. He defended Labour's reduced share of the vote, at just under 40%, as ''remarkable after 12 months''.

But with voters staying away in droves, he warned of the potential consequences of widespread apathy. ''I'm concerned about complacency. This low vote means I'm concerned for democracy,'' he said.

In London, a 35% turnout after a subdued campaign did not prevent voters in the capital from endorsing plans to legislate for an elected mayor and an executive assembly. Early returns showed a three-to-one majority - 77.2%- in favour of the plan which would make the mayor the second most powerful elected figure in the United Kingdom after the Prime Minister.

Yesterday's poll gave 20 million people a chance to elect 4000 councillors in 166 local authorities, including 32 London boroughs. Following 1994's record upheaval, the Tories were left controlling just seven councils.

Initial projections showed support for Labour down by five points on the General Election, to 39%. The Liberal Democrats' share of the vote was up considerably, from 17% to 25%.

But the figures showed little sign of political recovery for the Tories, with their share of the overall vote at 32%, just one point higher than their disastrous showing last May 1st when they were forced from power.

Senior Tories took comfort from early gains of more than 180 seats. But private projections of up to 250 extra seats appeared over-optimistic and cast doubts on the party's efforts to rebuild its fortunes.

The Liberal Democrats celebrated seizing control of Liverpool City Council on the back of widespread voter disillusionment with a succession of local Labour sleaze scandals.

Liberal Democrat leader Paddy Ashdown said: ''This is a huge success for the Liberal Democrats and a huge relief for the people of Liverpool. To add to all our local government successes, we now run for the first time a metropolitan city council.''

But his party lost control of six other councils, including the Isle of Wight and Hastings. For their part the Tories won back the benchmark council of Runnymede in Berkshire, and gained Tunbridge Wells, another of the authorities seen as crucial to the party's recovery.

Labour hailed its success in seeing off a tough challenge from the Tories to seize control of Trafford, one of the few authorities where Labour was perceived to be under threat.

Sir Norman Fowler, the Shadow Environment Secretary, sought to detect a trend in early gains for the Tories. ''Step by step we are recovering,'' he told the BBC. ''We are winning seats steadily. I'm happy as long as we are winning seats back.''