SO WHERE do we go from here? Just over a week ago, voters in Southampton delivered their verdict at the polls. But the question who will run the city's multi-million-pound budget is as far away from an answer as it was before May 1.

The Liberal Democrats are now the largest single party on the City Council with 18 seats.

Yet their dream of being in charge of the city for the first time in over 90 years could founder - if other parties do deals behind closed doors.

The Daily Echo understands that negotiations have been taking place between senior figures in the city's parties which could once again see Labour clinging on to power.

On May 6 the 12-strong Conservative group held their group meeting when they re-elected Councillor Alec Samuels as leader.

Harefield Councillor Royston Smith was also elected deputy leader when the combative Councillor John Hannides stepped down from the job.

Publicly, the Conservatives are maintaining their position that they would not support either the Liberal Democrats or the Labour Party to run the city.

In private, senior Conservatives say they will abstain in the crucial May 21 vote, which will decide who becomes the leader of the council.

Their verdict means the power brokers who run the city council will probably be the newly-formed independent group made up of former Labour councillor Paul Russell and Councillor Harry Mitchell.

Cllr Mitchell, a former Liberal and Liberal Democrat councillor, and Cllr Russell are the sole members of the Independent group that was formed this week.

If the 16-strong Labour group decides to join forces with councillors Mitchell and Russell, it would mean the votes of Labour and the Independents and the Liberal Democrats would be tied at 18 each.

Furthermore, if Labour's Cllr Parvin Damani is elected as city mayor this year as expected, it would be her who would get the casting vote.

It would mean that, once again, Labour would be in charge of the council as a minority administration - with Labour's Cllr June Bridle again elected leader of the council.

Alternatively, if Labour decide they cannot work with Cllr Russell - who quit the party to become an independent - then the Liberal Democrats could find themselves in charge.

But the Lib Dems would also have to swallow hard if they were forced to work with the Independents. Cllr Mitchell himself formed part of the breakaway Liberal Party whose councillors quit the Liberal Democrats last year.

Cllr Russell refused to reveal if he had held discussions with any of the three main political party leaders.

However, he confirmed that negotiations in advance of May 21's crunch vote had taken place.

He said: "We have been approached by various people and are in negotiations with those people."

The Labour group is due to meet to discuss their next move on May 16, but Cllr Bridle is also keeping tight-lipped about the possibility that she could once again be in charge of the city.

She told the Daily Echo that no deals had been struck as yet with any of the city council's other political groups.

She said: "I remain leader until May 20 and full council meets on May 21 when the council will elect the leader as it has done every year."

Conservative Group leader Cllr Alec Samuels said: "My party is the smallest of the three so we are awaiting developments.

"We do not support either the Labour Group or the Liberal Democrats. We are largely waiting upon events. The Conservative group is an independent group but who knows what the future may hold. We are only concerned with the welfare of Southampton's citizens."

Meanwhile, Liberal Democrat leader Councillor Adrian Vinson said his group would be putting forward his name as leader of the council.

He said: "Our position is as it was following the election result. As the largest party and indeed as the party which had the largest share of the vote both this year and last, we will be putting forward a nomination for the leader of the council."

HANDLING A £232m BUDGET

Whichever party eventually assumes control of Southampton City Council will handle a budget of just over £232m which breaks down into £1,687.08p for every person in the city (population, 217,000).

They will have to deal with the on-going strike by council workers in protest against around 130 job losses which were imposed following February's Budget as well as the day-to-day running of a major unitary local authority.

Councillors all receive an allowance of £6,500 per annum. In addition, councillors with special responsibilities receive top-up cash payments. These are:

Leader of the Council £12,161.25

Executive Members (x8) £7,633.13

Chairs of Overview and Scrutiny Committees £5,459.63

Opposition Group Leader: £4,916.25

Chairs of Regulatory Panels £2,742.75

(effective from date work programme for scrutiny panel/commission commences to termination date).

Members are only allowed to claim one special responsibility allowance.

Members are also entitled to claim for the use of telephones and computers and travel and carer allowances.