POLITICIANS will today begin talks to thrash out a new power-sharing deal to run Stoke-on-Trent City Council.

Labour's success in Thursday's local election transformed the balance of power on the authority.

But it was not enough to hand the party overall control.

Group leader Councillor Mohammed Pervez now holds 26 of the council's 60 seats.

That is more than the next three largest parties – the City Independents (11 councillors), the Conservative and Independent Alliance (eight) and the BNP (five) – combined.

In theory, Labour could choose to remain in opposition until next May's all-out elections.

But the fragmented nature of the council chamber, which includes representatives of nine political parties and factions, would make it impossible for current council leader Ross Irving to form any meaningful coalition among the remaining 34 seats.

The more likely outcome will be a return to a Labour-led ruling coalition.

But even that may not be a straightforward process.

The easiest course of action would have been for Labour to link up with the Liberal Democrats, but Labour's victory cut the Lib Dems down to just four members.

It means that, in order to achieve a majority, Mr Pervez will have to approach either the Conservatives or the City Independents.

But both courses of action will throw up obstacles.

The City Independents are known to have found the current coalition very divisive, and may prefer to retreat to familiar territory in opposition.

And when Labour last shared power with the Tories, in 2008/09, the arrangement was felt to be mutually damaging by figures on both sides.

During that period, the BNP rose in strength to nine councillors and the 16-strong City Independents became the largest political group as confused voters looked beyond the mainstream parties for credible opposition.

Mr Pervez was delighted by his group's performance on Friday.

But he now faces a massive challenge to defend those gains in 12 months' time.

He expects to get a clearer idea of which way the group will go after speaking with members tonight.

He said: "We are not going to make any knee-jerk decisions at the moment.

"The Labour group is getting together tonight to have discussions about where we go from here."

The Liberal Democrats are also expected to hold their strategy talks later today. Leader Councillor Kieran Clarke, also the council's cabinet member for resources, said nothing had been decided ahead of the election about how the group would respond to any shifts in the balance of power.

He said: "It is going to be very interesting now that Labour is the largest party, but we haven't decided anything yet about what we do now.

"I think Labour need to decide what they are going to do first, then we will have to see where we stand."

Council leader Ross Irving is also waiting to find out whether he will get to reshuffle his cabinet, or whether he will have to move aside and let Mr Pervez take the helm.

The current nine-member cabinet already has two vacancies, left by City Independents Derek Capey, who stood down, and Ian Mitchell, who lost out to Labour in Hartshill and Penkhull.

And four of the posts are currently held by members of the eight-strong Tory group.

Mr Irving said: "We will have to have some discussions about the new groupings on the council and about the leadership to see what view people take.

"But I am prepared to lead a coalition and try to provide the leadership that the people of Stoke-on-Trent expect and deserve."