Liberal Democrat Steve Galloway announced yesterday he will not be seeking reappointment as leader at the authority's annual meeting on May 22, when Labour may attempt to claw back control of the city from the Liberal Democrats for the first time since 2003.

The veteran politician has served on the council since 1973 and took over the top job in May 2003 amid the political fallout over the departure and later death of former leader Labour member Rod Hills, whose outstanding career was dogged by scandal during the latter part. Coun Galloway, who will be replaced as party leader by former deputy Andrew Waller, said: "I have enjoyed my five years as leader of the council and greatly appreciate the support that residents and council staff have given to me.

"However, it is a demanding, seven days a week, job and I feel that the time is right for someone else to take on the burden.

"When I became leader in 2003 the city faced a crisis of confidence, partly because of adverse publicity concerning a previous post holder.

"The council had become introspective and defensive. It faced a major revenue shortfall and had no concrete plans to address emerging community safety, economic development or public investment priorities."

He underlined the York Pride initiative was – and still is - improving public service standards in the City. Its education system was now the envy of the rest of the country and social services were also outperforming comparable councils, he said. Street cleanliness was at a record high, crime at a record low and the transportation strategy a national model.

New investment was transforming public and private sectors with new schools, transport improvements, and modernisation of leisure facilities such as libraries and swimming pools.

The council has also been decisive when taking risks with public opinion such as introducing separate recycling collections and investing heavily in the Hazel Court recycling centre and the new EcoDepot, and backing the new Arclight centre for homeless people.

He believed history would record the last few years as the era when the city made a giant step from a dependence on its historic economy to new technologies that would sustain it in the future, as reflected in five years of record low unemployment in spite of the decline in manufacturing.

New buildings like York College, St John's University and the council's own Hob Moor, St Oswald's and St Barnabas schools, will shortly be joined by an expanded York University and developments on Hungate and Piccadilly. "York faces a very exciting decade. My successor, I know, will want to take the final steps to secure a new sports stadium for the city and will lead in driving through the modernisation of our indoor concert and leisure facilities," he said.

The city's financial position was more secure, as underlined by its council tax rate.

"Residents can be confident about their future in a city which cherishes the best of its history while being prepared to take bold decisions to secure its ongoing prosperity," he added.

Coun Galloway made clear he will remain an active member of the council and will focus more of his efforts on his own Westfield Ward, in Acomb, which has itself seen major change during his period in office.