The Liberal Democrats lost control of Oldham MBC as the BNP failed to win any seats at Thursday's local elections.
The result means the Lib Dems have 29 councillors - just one more than Labour. There are two Tories and one Green.
Meanwhile, the BNP did not win a seat as the mainstream voters were mobilised, with turnout being much higher than expected. It was estimated to be 10% higher than the last local elections.
However, the far right party still managed to make an impact in the town which was the scene of race riots exactly a year ago.
Of the five seats contested, the party was runner-up in four.
Local MP Phil Woolas said: 'Of course I'm worried about the BNP's showing, but the decent people of Oldham have rejected extremism.'