A dramatic showdown left Essex County Council in turmoil, with the ruling Labour/Lib Dem administration resigning.

They have challenged the Tories to try to run their "back of an envelope" economy budget.

The Tories put forward their controversial cut-price budget last week as an amendment to Labour/Lib Dems'. It won by a whisker.

However, furious Labour and Lib Dem councillors predicted social services would bear most of the £3million cuts needed by the Tory budget to give people 17p a week off their council tax rises.

Council leader Mervyn Juliff (Lab, Harlow, Great Parndon) threw down the gauntlet on Tuesday at the end of the county meeting.

In a voice choked with emotion, he said: "After the decision made by the county council last Tuesday, the administration group, after a great deal of consideration, has decided it can no longer control the council under the budget set."

He resigned as council leader and said committee chairmen and vice-chairmen would go at the next meetings of their committees.

Deputy council leader, Lib Dem Ken Jones (Colchester, Park) said: "The Tories adopted their own reckless back of the envelope solution instead, which will lead to unacceptable cuts in local services."

Labour councillor Dennis Williams (Canvey, East), said after the meeting: "They are going to find it is a totally impossible budget."

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