THE chief executive of troubled Dumfries and Galloway Council unexpectedly announced his resignation yesterday on health grounds.

A brief statement from the council explained that Mr Ian Smith, 49, had taken medical advice and decided a major change of lifestyle was necessary. His resignation, with immediate effect, was accepted ''with regret''.

Mr Smith's deputy, Mr Philip Jones, has taken over as interim chief and, according to council leader John Dowson, it will be ''business as usual'' on Monday.

Mr Smith has been involved in a series of controversies this year, most recently over a #2m overspend on improvements at Stranraer Academy.

The council's monitoring officer on the project, Mr Gerry Johnston, of Dumfries, who was taken off the project, blamed the chief executive for allowing the costs to go out of control.

There was also a row over Mr Smith's use of procedures to acquire a former bank building in Dumfries for use as housing department offices. Some councillors felt the elected members should have been consulted over the #1m contract.

Earlier in the year there was a fiasco over the resignation - or non-resignation - of council convener Allan Baldwick, who was then under police investigation over his expenses.

Mr Smith interpreted a letter from Mr Baldwick as implying he had resigned and issued a press statement to that effect. Mr Baldwick challenged this view in court and was vindicated by the sheriff's judgement. He is still in post, although he does not attend council meetings and has not been charged.

Council leader Mr Dowson said last night: ''We had no choice but to accept Mr Smith's resignation but we are very sorry to see him go.''

He said the ruling Independent-Lib Dem group is planning to put forward recommendations for changes in the council's administration at an executive committee meeting on December 15 but would not reveal details.