THE two parties may be at daggers drawn on a national level, but it appears Labour and the SNP are prepared to do deals to keep the Tories out of administrations at several local authorities.

The second biggest council, Edinburgh, has been run by the Capital Coalition for the past five years and now Labour and the SNP want to do another deal, with the SNP now the largest party.

The coalition is awaiting approval from Labour’s National Executive Committee.

In South Ayrshire the two parties have already formed a coalition and Fife Council’s Labour Group will tonight consider an offer from the SNP to form a coalition, with sources saying a deal is very likely.

New Fife SNP group leader David Alexander is said to be keen to turn the SNP’s achievement of becoming the largest party into real power, but that is only possible with a coalition arrangement.

In South Ayrshire new SNP leader Douglas Campbell, who will become council leader later this week, said: “I’m looking forward to working with colleagues in the Labour group and the Independent members.

“The priorities that we put to the voters in the council election were very similar and our discussions about forming an administration progressed very quickly.”

Brian McGinley of the Labour Group, who will become depute leader, said: “We view this working arrangement as a unique opportunity to advance the long-held Labour values of tackling poverty, promoting equity and bringing about a socially just South Ayrshire by mitigating the effects of austerity on the most disadvantaged.”

In Edinburgh, SNP councillors are encouraged by Labour’s approval of the pact in South Ayrshire, but are aware that some senior Labour figures would not be happy with a coalition ahead of the General Election.

The SNP’s 19 seats and Labour’s 12 would still not be enough for overall control, but the Greens have indicated they will provide support albeit not in coalition.

Labour are understood to have rejected the idea of Tory leader Iain Whyte for a Unionist coalition to stop the SNP taking control. He said: “We see the problem as being that the SNP are a single-minded party and likely to use control of the capital as part of their continuing campaign for a second referendum and ultimately independence.”

An SNP source said: “Labour and the SNP do not see eye to eye on independence, but you have to put that to one side and get on with it.”