All eyes, however, were on the British captital, where London's rumpled, comic, and often outright offensive Boris Johnson was declared the winner of a surprisingly close mayoral race.
The election results confirmed late Friday install Johnson, a Conservative, as the unpredictable host of the upcoming 2012 Olympics. He narrowly beat out Labor's Ken Livingstone, his leftist predecessor as mayor.
Johnson, known best for his shock of blond hair and sometimes shocking outbursts, provided a bright spot on a rough day for the Conservatives.
Cameron also sustained a blow to his legislative hopes, as nine cities - including Manchester, Birmingham, and Newscastle-upon-Tyne - voted down plans to have their own directly elected city mayors. Cameron had hoped that new mayors and U.S.-style elected police commissioners would give power from the central government to local communities.
Bristol, in southwestern England, was the only city to vote in favor of direct elections.
Like Cameron, Deputy Prime Minister Nick Clegg's Liberal Democrats - the junior partner in Britain's coalition government - suffered woes, losing 336 councilors. That pushed their total number of local councilors below 3,000 for the first time since the party formed in 1988.
Labor Party leader Ed Miliband toasted his opposition party's revival after it was ousted from national office in the 2010 election. Labor won control of 32 more local authorities and claimed 823 new council seats across the country.
"We are a party winning back people's trust," Miliband said. "People are hurting. People are suffering from this recession, people are suffering from a government that raises taxes for them and cuts taxes for millionaires."
Cameron insisted his poll battering was to be expected as his government carries out grueling austerity measures amid the European debt crisis. Britain is now in a double-dip recession.
"These are difficult times and there aren't easy answers," Cameron acknowledged.
In Scotland, Alex Salmond's separatist Scottish National Party made local gains before an expected 2014 referendum on independence but they did not win control of Glasgow's council, a key target.
Elsewhere, the United Kingdom Independence Party - which advocates a British withdrawal from the European Union - made advances while the far-right British National Party saw its vote wiped out, losing all six council seats it was contesting.
Most Britons chose not to vote at all. Turnout was expected to be at 32 percent - the lowest level for an election since 2000.