Colchester Council last night refused chief executive John Cobley an early retirement package that would have cost the authority £230,000.
All 60 councillors met in private last night (Wednesday) to decide whether the money should be found from the public purse when the council was already facing £1 million budget cuts.
The Labour group had put forward a motion backing the officers' recommendations that Mr Cobley be allowed to retire early and to meet the £233,000 pension costs.
But this was overturned in what had been forecast as a 'knife-edge' vote.
Mr Cobley requested early retirement last month after 16 years at the helm. He is currently at home on paid leave.
For more on this story see today's Evening Gazette
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