Independent councillor Meryl Gravell will continue to lead the authority
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Labour will continue to run Carmarthenshire Council in a coalition with independents, despite losing more than half its councillors.
It means Plaid Cymru will not be part of the ruling group, despite increasing its seats from 16 to 30.
Meryl Gravell, an independent, will serve her third term as council leader, with Labour's Kevin Madge as deputy.
Labour won only 11 of 72 seats, down from 25 in 2004, with Plaid taking many of its former seats in Llanelli.
The independent group won 30 seats and the one Liberal Democrat on the council has agreed to work with them. There are two non-aligned councillors.
Mrs Gravell said: "The independent and Labour groups have worked well together and we are looking forward to building on that partnership.
"We are delighted to be returning to administration and our priorities will continue to be to work together for the benefit of the county."
She said Plaid would be offered chairmanships of scrutiny committees for the first time.
Mr Madge, who blamed national politics for Labour's poor local showing, said: "We are very pleased to be continuing our partnership with the independent group."
Plaid Cymru has described the continuation of the Independent-Labour coalition "as a slap in the face of democracy."
Councillor Arwel Lloyd said people had "clearly rejected" the old administration by voting in such numbers for Plaid.
He said that the people of Carmarthenshire had indicated that they wanted a change, but that would not happen as result of the coalition deal.
*Meanwhile, in Pembrokeshire John Davies has been reappointed leader of the independent group and is expected to be formally appointed council leader later this month.
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