Election night was damaging for Labour in the West Midlands
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The Conservative group on Birmingham City Council has ruled out any form of power-sharing with Labour.
It follows last week's local elections in which Labour lost overall control of the authority.
But in Coventry, where Labour also saw overall control of the city council slide from their grasp, the two parties have now reached an arrangement.
A deal has been struck that will see Labour hold the positions of leader and deputy leader, while the Conservatives will take charge of all scrutiny committees.
'Breach of faith'
The Conservatives have turned down a similar proposal in Birmingham.
They said such a move would be "fundamentally wrong" and a "breach of faith" with local residents.
Labour policiticans in Birmingham will now have to consider the other options that are open to them.
However, the Liberal Democrats have already indicated they do not favour a deal between the two parties.