Exclusive: Crisis council in new turmoil as chief executive stands down

The news comes as the Audit Commission prepares to release its report after an emergency inspection last month, and is seen by some political leaders as proof that Government intervention at the beleaguered authority is inevitable.

The commission was called in amid "serious concerns" over the council's performance, highlighted after an investigation revealed chronic failings in the Edlington boys torture case.

It is understood Mr Leader's departure will be confirmed at a council meeting later today. His decision comes less than three months after he was appointed and he is in line for a pay-off running into tens of thousands of pounds.

Within two days of the appointment Mr Davies demanded that he should resign, but Mr Leader was backed by the elected members.

Sources said, however, that matters had now reached unworkable levels and today's meeting of the chief officers' appointments and conditions of service committee is expected to confirm he is stepping down.

The Audit Commission will meet on April 13 to rubber-stamp its findings and recommendations to the Government. A final report is expected to be published the same week and sources suggest Government intervention is inevitable, with the authority failing to meet any of the criteria of good governance.

The commission can recommend a chief executive is parachuted into Doncaster, bypassing the normal procedures.

The leader of the Independent Alliance, Garth Oxby, described Mr Leader's impending departure as a "precursor to Government intervention" and said the latest development indicated control of Doncaster was already slipping from the council.

Coun Oxby said: "Is the council being run by Westminster? Is it being run by the Audit Commission? I don't know who's running Doncaster – it's looking more and more like Government intervention.

"I think he's been put under tremendous pressure and I'm very sad personally. I thought he was a breath of fresh air.

"I'm disappointed personally but more disappointed for Doncaster because I do not know which way forward we are going to go now."

Mr Leader is understood to be leaving with immediate effect. He is Doncaster's third chief officer in three years and it is not clear if a replacement has been organised.

His appointment in January followed the sudden resignation of the former chief officer Paul Hart, who cited "personal reasons" for his decision to go.

The appointment was challenged by Mr Davies, who threatened legal action.

Both Mr Davies and Mr Leader declined to comment.

Sources said the relationship between the two was doomed because the English Democrat mayor had wanted Robin Hooper, a consultant working as deputy director of children's services, to be nominated for the post.

The chairman of the chief officer appointments committee and leader of the Labour group, Joe Blackham, said an agreement would be discussed at today's meeting and indicated a negotiated final settlement was being put to them for approval.

Like Coun Oxby, he said the handling of Mr Leader's departure suggested external intervention was already influencing the running of the council.

He said: "Doncaster, it would appear, is being run externally. It's not the councillors of Doncaster deciding they are going to get rid of Tim Leader.

"It's going to be an extremely sad loss to Doncaster. He's the most competent officer to cross the threshold of the Mansion House in my memory."

Legally, Doncaster Council has to have a head of paid service in place and if Mr Leader leaves immediately an alternative candidate will have to be found.

Coun Blackham said the authority was likely to be faced with three options – an internal interim appointment, a chief executive from a neighbouring authority helping out on a short-term basis or a potential list of interim candidates provided by the Government.