Early results showed Liberal Democrats would face tough time as all of the seats in South Tyneside, Knowsley and Sunderland were wriggling out of the party’s hand, The Telegraph reported.
Labour sources claimed of a stunning performance across England, especially in the areas where the party had no representations earlier.
Baroness Warsi, the co-chairman of the Conservative Party said it would be “a tough night” as early results showed Labour holding Sunderland and Halton councils, with Ed Miliband’s aides claiming wins elsewhere.
“It’s going to be a bad night for the Conservatives,” she told the BBC.
Almost 5,000 council seats are being contested, along with elections for mayors in London, Liverpool and Salford and referendums on the introduction of elected mayors in 10 other cities.
“Obviously we have got to look at the results and learn from the results,” said Mr Fallon. “Obviously the last month has not been good.”
“We can always improve the way that we communicate our message and the way that we try and focus people on the really big achievements of this government.”
“They want us to explain our achievements, they want us to explain how we are tackling the appalling deficit we inherited, how we are rebalancing the economy and how we are reforming the public services that people rely on and not to get distracted by some of these noises off, on some of these very minor issues.”
Opinion polls suggest that Mr Johnson should retain control of City Hall and defeat Labour’s Ken Livingstone.
“It’s far too early to start speculating about the next leader of the Tory party,” Mr Fallon said.