SCOTLAND’S only Labour MP has been urged to take action over a “disastrous” Edinburgh Council budget approved by his colleagues.

Labour's elected members in the city failed to get their budget through last week and instead backed proposals from the LibDems, which led to calls for leader Cammy Day to quit his post.

Suspended Labour councillor Ross McKenzie also resigned from the party in the middle of the heated meeting as he claimed Edinburgh was controlled by a "British nationalist majority".

The agreed budget includes plans to end the "long-standing policy" of no compulsory redundancies and begins the process of outsourcing waste and cleansing services. Council tax is also set to rise by 5% in the capital.

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SNP Edinburgh East MP Tommy Sheppard has now written to Ian Murray – who represents Edinburgh South - asking him to persuade his colleagues on the council to “find a way of averting these disastrous outcomes for ordinary council workers and our city”.

The letter states: “Like me, I am sure that you were appalled to see Edinburgh’s Labour councillors voting to pass a budget put forward by the Liberal Democrats which ends the long-standing policy of no compulsory redundancies, and which begins the process of outsourcing waste and cleansing services.

“Labour councillors chose to vote for this despite the joint SNP-Green budget being on the table, which would have continued to protect workers from compulsory redundancy, and which would have guaranteed that waste and cleansing services are kept in-house and not run for private profit.

“I know we will have our differences but on this I believe we may have a broad measure of agreement.

“Therefore, I am asking you to use your influence within the Labour Party in Edinburgh to persuade your colleagues on the council to find a way of averting these disastrous outcomes for ordinary council workers and for our city.”

Labour have been in control of a minority administration on Edinburgh Council since last year's local elections after they struck a deal with the Tories and LibDems.

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Protestors stood outside the city chambers ahead of the budget debate calling for a “no cuts budget”.

Tactical voting from the Greens saw the party’s councillors divide their votes, making Labour’s budget fall at the first hurdle with the fewest votes of all the proposals: one from Labour, one from the Tories, one from the LibDems, and a combined SNP-Green bid.

With theirs out of the running, Labour backed the LibDems’ budget, while the SNP and Greens voted together. As a result the Tories’ budget fell.

Finally, the three Unionist parties were forced to unite around the LibDems’ budget in order to block the SNP-Green proposal.

SNP group leader Adam McVey said Labour had had a “disaster”.