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Victorian Labor has retained former premier Daniel Andrews' old seat of Mulgrave in the by-election.

Mr Andrews had given up the seat when he announced his retirement from politics in September.

“New Premier Jacinta Allan ... breathed a little bit of a sigh of relief,” Sky News host Caleb Bond said.

“But Labor suffered a 10.9 per cent swing on primary votes.

“Despite the result – Opposition Leader John Pesutto claims voters sent a strong message to the Premier … due to this swing.”