SCOTTISH Labour has refused to rule out backing coalition deals with the Tories in local authorities across the country.

The party’s Executive yesterday agreed that it would only sign off “anti austerity” power-sharing agreements, but declined to close the door on Tory pacts.

An SNP spokesperson said: “The SNP has been crystal clear. We will not put austerity-obsessed Tories into power in council chambers across Scotland.

“Labour's astonishing inability to make the same commitment will simply ensure they continue on their current trajectory towards electoral oblivion.”

Labour last week lost over 100 seats at the council elections and came third behind the Tories for the second time in twelve months.

The poor set of results included Labour losing councils that it had previously controlled outright, but Kezia Dugdale’s party came first in three local authorities and has the potential to be kingmaker elsewhere.

During the campaign the Tories and the SNP effectively banned deals with each other, leaving Labour as their most credible partner.

However, agreeing a coalition with either party carries risks for Labour. Deals with the SNP would lead to accusations by the Tories that Labour was soft on the party.

Similarly, Labour would be attacked by the SNP if local politicians struck up partnerships with the Conservatives.

The SNP have called on Labour to snub Tory coalitions, but Labour’s governing body refused at its meeting in Glasgow yesterday.

The Executive, which includes Dugdale, will allow council groups the discretion to propose deals with any party, but on the proviso that a sub-group of the Executive has the final say.

In a statement yesterday a Scottish Labour spokesman said council groups would have to ensure that no power-sharing deals resulted in “increased austerity that will disproportionately impact on the poorest communities”.

A party source said Tory coalitions had not been been rejected, but played down the prospect,

In a range of local authorities – including North Ayrshire, East Ayrshire, North Lanarkshire and South Lanarkshire – Labour could, in theory, turn to the SNP or the Conservatives.

Scottish Labour deputy leader Alex Rowley said: “Labour’s approach is clear and consistent: we will categorically refuse to do any deal with another party if it would result in further austerity being imposed on local communities.

“Labour values must run through any deals: the defence of local services against cuts; and the proper funding of the services so many people rely on such as education and care for the elderly.

“Additionally, we will require any power-sharing administrations to protect jobs by opposing any compulsory redundancies."

First Minister Nicola Sturgeon met the new group of SNP councillors in Glasgow yesterday. The party seized power in the city for the first time and are expected to enter into a partnership with the Greens to run the city.

Although the SNP returned more councillors than other party nationally, the surge of support for the Conservatives took the gloss off the victory.

Sturgeon said: “The SNP won this election, but make no mistake the Tories are planning to take Scotland’s voters for granted in June’s general election.

“Labour are now confirmed as a complete nonentity in Scottish politics — and an increasingly feeble force UK-wide, unable to form an ‘opposition’ to the Tories in any real sense of the word. Their chance of forming a government at Westminster is the stuff of utter fantasy.

“It is now essential — more so than ever — that Scotland has a strong voice to stand up to the Tories. The only way to secure that is to make sure Scotland votes SNP on June 8.

“We need a strong Scottish Parliament, delivering on the powers we already have, and a voice at Westminster that won’t put up with Tory attempts to hold Scotland back.”

Ruth Davidson, the Scottish Tory leader, yesterday tried to use her party’s strong showing at the council elections as a springboard for the upcoming Westminster poll.

The Conservatives increased their councillor tally by over 160 and made dramatic gains in previous no-go areas such as Glasgow and North Lanarkshire.

Davidson’s trip to the Gordon constituency, which is held by former SNP First Minister Alex Salmond, is a sign the Tories are attempting to unseat SNP heavy hitters.

She said: “This week's local government election has shown we are the only party in Scotland with the strength to fight back against the SNP – in every part of Scotland.

“We won the local government election is Gordon this week, beating the SNP into second place. It means that in this seat, as in many others, it is a two-horse race between us and the Nationalists.

“As is the case right across Scotland, the choice in Gordon is clear. It's between a Scottish National Party that will to take us back to more division and instability, and a Scottish Conservative party that will fight against another referendum so we can all move on together.”

The Scottish Greens, who made modest gains last week, claimed that the “expansion” of their councillor base was proof that “local services matter”.

MSP Patrick Harvie, who is co-convener of the party, said: “Greens have expanded our support base across Glasgow and Edinburgh, and we’re seeing significant breakthroughs in other parts of Scotland, getting our first councillors onto local authorities where those Green voices will bring fresh ideas to the table.

“Amid a backdrop of poor media interest in local government, a Tory prime minister calling a General Election in the middle of the campaign and other parties’ shameless attempts to make a local election about national issues, we’ve made real progress.”