The Labour leader of Edinburgh Council says he is looking at "all options" to overturn controversial parts of an opposition budget which could lead to job losses and outsourcing of services, after losing a key vote.
Cammy Day pledged to "protect council workers" and said a commitment to make no compulsory redundancies would not be withdrawn despite it being included as a £600,000 saving in the Lib Dem budget, which was passed with support from Labour and Conservatives last week.
Councillor Day said he was "ambushed" by the Greens and newly-independent councillor Ross McKenzie, who quit the Labour group earlier in the day, after they voted tactically with the Tories - leaving the administration's budget eliminated with the least votes in the first round.
The council leader has signalled his intention to carry on despite calls to resign, saying he has the support of his party and the trade unions who "want Labour in the driving seat."
One Edinburgh Labour insider said it was "last chance saloon" for the council administration however.
The source added: "This is about principles, this is about integrity, this is about a leadership that has lost the budget - how can they carry on?"
Approved by 32 votes against 29 for the SNP/Green motion, the Lib Dem budget included a five per cent council tax rise and significant investment in roads, but also included "red line" issues for Labour.
As well as ending no compulsory redundancies, it proposed generating savings of "£500,000 in year one, rising to £2.5 million per annum in subsequent years" by looking at outsourcing waste and cleansing services - both of which Edinburgh Labour said they would protect in their 2022 council manifesto.
However Councillor Day said the budget paper "does not change policy within the council."
He said: "If there's to be a change to compulsory redundancies that requires a report to be brought to the relevant committee or council in due course and for the council to make the decision about whether we change that policy.
"There are also rules in the standing orders that allow us to reverse decisions after a period of time - so we're looking at all options about how we can reverse this.
"I'm hoping all parties will be able to join us in taking this forward."
Graeme Smith, convener of Unite City of Edinburgh Council branch, which represents 1,500 local authority workers in the capital, said the union is in "continuing discussions with councillors about how these measures can be overturned at committee level."
He said members would be "campaigning and lobbying and looking to contact all members to explore every avenue we have to fight against these changes."
Mr Smith said union members were not joining calls for the administration to step down at the moment, adding he had been "slightly reassured" about job losses and outsourcing whilst remaining "vigilant."
Councillor Day said he "met with the Lib Dems after council to reaffirm our position that we would not support compulsory redundancies or privatisation."
A Lib Dem source said: "A majority of councillors voted for the Lib Dem budget and, as with any budget, we expect it to be implemented in full.”
Asked if he would resign if either of the controversial proposals are taken forward, Councillor Day said: "I am confident we won't get to that point because we're working beside all political parties and the trade unions to get to that position."
The council leader admitted the chaotic budget showed councillors had to do better to work cross-party and said he would "absolutely try harder to work harder with political groups - all of them."
He said the "unfortunate events" of the last few days also presented the need to overhaul the budget process to avoid "last minute horse trading."
Mr Day added he has requested the council's chief executive Andrew Kerr to bring forward a report setting out how plans could be circulated earlier next year to allow for more time for negotiation and consultation.
Alys Mumford, Edinburgh Greens co-convener, said last week's budget fiasco "exposed some of the challenges Labour face as an extreme minority administration, as well as the flaws in Edinburgh’s budget-setting processes."
She added: "We’re obviously disappointed that Labour didn’t vote for our joint budget and instead chose to support the Liberal Democrat proposal which threatens to end the council’s policy of no compulsory redundancies, and Green councillors are keen to work with all other parties across the chamber to defend our workers against redundancy and privatisation."
Labour's Edinburgh Western branch passed an emergency motion on Sunday which said the party's council group should "resign the administration" and expressed "sincere disappointment" in councillors' "failure to pass a budget."
The motion was then brought to Edinburgh Labour's Local Government Committee (LGC) the next day but was withdrawn.
Councillor Day said: "The Constituency Labour Party (CLP) decided to withdraw the motion after hearing from us and from the trade unions that the right thing to was to continue.
"We're pleased that the city party seen that the best way forward is to work with the Labour group and we want to come out as a united party in Edinburgh. We're particularly grateful for the support of the trade unions and we're absolutely clear this should be about protecting council workers."
A Labour source who was at the meeting said: "People were saying this is the Labour group's last chance saloon - particularly the trade unions were saying if you can't sort this out then you shouldn't be in administration.
"This is about principles, this is about integrity, this is about a leadership that has lost the budget - how can they carry on? How can 12 Labour councillors run an administration of 60 odd?
"It's a mess basically, that's what most people think - it's a mess and it's embarrassing."
READ NEXT:
- Edinburgh council budget: Everything you need to know and how it will impact you
- Edinburgh Budget LIVE: Council leader 'should resign' after Labour plans fall
- Madeleine McCann investigator speaks out after woman claims she is 'Missing Maddie'
- Rod Stewart adds extra Edinburgh Castle date due to phenomenal ticket demand
- Edinburgh resident fizzing at council's decision to move bin hub outside her home
