A CRUNCH meeting between party group leaders in Burnley has failed to appoint a new leader and executive.

Chief Eexecutive Gillian Taylor and monitoring officer Nick Aves met group leaders in an attempt to agree a way forward.

Leaders of all political parties, minus the British National Party, have been meeting to negotiate a cross-party executive to run the council.

Labour are offering the other parties a number of seats on a new administration, but the offer is not seen as acceptable. Liberal Democrats are holding out for half the seats on any executive.

The BNP have been told there will be no places for them.

Dr Taylor said: "I have written to all the council's key partners reassuring them that, despite the political situation, there is broad agreement between most councillors on the council's priorities and the need to act in the best interests of the borough."

Labour leader Coun Stuart Caddy said: "We are working hard to resolve the situation.

"It is not in Burnley's interests for the situation to continue and, in the interests of the town's future, we are prepared to formulate a partnership agreement with the Liberal Democrats and, if necessary, the Conservatives."

The parties need to try and find a solution before a special meeting of the council on September 29.

If talks fail there are fears civil servants could be ordered to take control of the council. By law ,councils must have a leader and ruling body.

The crisis follows Labour's minority administration losing power at a council meeting last month.

Since the local elections in June, Labour had ruled with 21 seats compared to opposition parties' total of 24 seats.