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The leader of Caerphilly County Borough Council has announced he will step down with immediate effect.

Cllr Sean Morgan said his “moral standing” prevented him being “aligned with the Labour Party any longer”.

The Nelson ward representative was made council leader in 2022 and will remain as an independent councillor until the next local government elections in 2027.

The council said a new leader would be elected “in due course”.

Announcing his decision, Cllr Morgan said: “It’s been a pleasure to lead the organisation over the past three years and I am proud of the achievements and improvements that we have delivered together.

“However, I believe my moral standing does not allow me to be aligned with the Labour Party any longer, therefore I have taken the difficult decision to step down.”

His decision comes as the Labour group in Caerphilly prepares to contest a by-election for the Senedd, following the death of the party’s MS Hefin David earlier in August.

The party has selected Richard Tunnicliffe to fight the election.

Cllr Morgan’s time as council leader has seen him oversee a wide-ranging “transformation agenda” designed to trim unnecessary spending and modernise services, in the face of multimillion-pound budget pressures.

In June, he warned the council’s expected budget gap over the next three years could grow to £36 million, and was unable to “rule out” further cuts unless central government increased its support for councils.

Richard Edmunds, the chief executive of Caerphilly Council, said: “I would like to thank Sean for his hard work, dedication and commitment to improving the lives of everyone across our communities over the past three years.

“I have greatly valued and enjoyed working with Sean during this time and I am thankful for all of the support that he has given me since I became chief executive. I wish him all the best for the future.”

Cllr Jamie Pritchard, the deputy leader of the council, will lead the local authority on an interim basis until the Labour group choses a new leader.

Cllr Pritchard said: “It has been a pleasure to serve under Sean as his deputy leader since May 2022. I’m wishing Sean all the very best for the future, and I thank him for the support and work he has done for the authority.

“An election of a new leader of council will take place in due course, so during this interim period, I will assume the additional duties as the designated deputy leader.”

Nigel Dix, leader of the Independent group on Caerphilly County Borough Council said the Cllr Morgan’s decision to step down during the Senedd by-election was designed to do “maximum damage” to Labour.

Cllr Dix, who himself left the Labour Party nine years ago, said: “This clearly demonstrates that the Labour Party is divided – locally, regionally throughout Wales, and nationally across the UK.

“Whoever the new leader of the council is, I ask them to meet with opposition councillors and forge a new way forward, making sure people’s needs are met.”