The Labour leader’s resignation is as a direct result of his handling of the bin strike, in particular the collapse and fall out from the aborted deal he struck with the Unite union in mid-August.

Mr Clancy was due this evening to face calls for his resignation from Labour councillors and a possible vote of no confidence. He took over as leader of the council from Sir Albert Bore in December 2015.

Mr Clancy has made the statement below and has pointed out some of the successes during is tenure including some of which have saved the council millions and protected at risk services.

"It has become clear to me that frenzied media speculation about the Birmingham waste dispute is beginning to harm Birmingham City Council and the Birmingham Labour Party. I can see no end to such speculation, as ill-informed as much of it is, for as long as I remain Leader.

"I have therefore decided to resign both as Leader of the Labour group and as the Leader of Birmingham City Council with immediate effect.

"I would wish to stress that the actions I took along with my cabinet to negotiate an end to an extremely complex and difficult industrial dispute were done with the best of intentions.

"None of us are perfect, and I made some mistakes, for which I am sorry and take full responsibility. I am honoured to have been Leader of the council since December 2015 and proud of the many achievements during my time in charge.

"These include issuing the first £45 million ‘Brummie Bond’ for local housing, and two other initiatives that generated substantial savings for the council – renegotiating the ICT joint venture agreement with Capita, and reaching agreement to reduce the council’s annual payments to the West Midlands Local Government Pension Fund.

"Events in my personal life during this year have convinced me that there are issues of far more importance than Birmingham City Council, and although this has been said by politicians many times before, on this occasion I really am looking forward to spending more time with my family."