Sue Bates has resigned as leader of Swindon Borough Council amid reports that the authority may soon be forced to increase council taxes by up to 20 per cent.
In April a private company was given the task of helping the Wiltshire town improve its failing education system when councillors voted to employ a specialist education provider.
An Ofsted report, in September 2001, said the education authority's strategic management and planning was "poor or very poor in most areas".
'Political football'
Last week the council was at the centre of further controversy when social services worker Deborah Rees set up a website exposing her alleged experiences of bullying.
"I haven't walked out and I have given notice that I will be resigning in two weeks' time so that will give time for the council to elect a new leader," said Ms Bates.
"The timing is never best but it has to be done. I am being used as a political football by opposition parties.
"They see me as an obstacle, so I am removing that obstacle as a benefit to the county.
"I will still be working for the council and I will still be working very hard to secure the future of the council.
"We're in a hung situation and they're saying they find it difficult to work with me, so I am stepping aside to let that situation go forward.
"I accept my part in the situation we're in but so must the other 54 councillors as well."
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