Talks go on to solve problem of hung council

It is expected that both groups will attempt to forge a deal with the Green Party, which would give the Lib Dems their much-needed majority.

The Liberal Democrats lost control of Sheffield Council after last week's local elections, which saw them lose two of their 44 seats to Labour.

With 42 seats – exactly half of the council chamber – the Lib Dems can now no longer win a vote outright, or lose one.

Labour gained East Ecclesfield ward by just 50 votes and Mosborough by 257 from the Lib Dems, and also gained a seat in central ward from the Greens, bringing them to 39 seats in the council chamber – up from 36.

The balance of power is therefore held by the two remaining Green councillors – Jillian Creasy and Rob Murphy, plus former Lib Dem Frank Taylor who is now an independent.

Lib Dem leader Paul Scriven said last night: "Liberal Democrats believe in political parties working together if possible to try and improve the lives of local people.

"So given the fact that no party has overall control, we have no problem in exploring this option with both the Labour Party and the Green Party. "

Coun Creasy said that the Greens would be asking both the Lib Dem and Labour groups for a place in the council's cabinet in return for their support.

She said: "We will vote for a leader who is prepared to put together a cross-party cabinet and who accepts broad aims – to invest in jobs, with fair wages and incomes; fairness for all in housing, education, health and transport; to help communities work together to become closer, stronger and safer and to tackle action that harms others or our planet."

Meetings were taking place well into the evening to try to hammer out a deal.

At the very latest, a decision has to be made before next Wednesday, May 19, when Sheffield's members will vote for a new council leader.

It is expected that the Labour group will try to use their new-found power on the council to try and push through some policies such as free swimming for children and pensioners.

One potential problem for Labour, however, is the absence of Labour councillor Marjorie Barker who has been unable to attend meetings due to long-term illness.

Without her vote, the Lib Dems would have a majority, even if both the Greens and the independent joined with Labour.