CUMBRIA County Council looks set to be run by a Labour-Liberal Democrat coalition.

The decision comes after the Conservative party came away with 37 of the county's 84 electoral divisions after the May vote but fell six seats short of gaining majority.

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Labour councillor Stewart Young is set to return as leader of the council and said that he was 'delighted' with the agreement.

"We will be able to build on our work of the past four years, but we are in no doubt as to the scale of the challenge which lies ahead if the government presses ahead with yet more cuts to local authority budgets," he said.

Since 2013, the council has been run by a Labour-Liberal Democrat administration, with Cllr Young at the helm.

Liberal Democrat leader, Cllr Ian Stewart, said that he was 'delighted' that his party was playing a 'full part' in the administration of the council but that it was a 'complicated' situation.

"There is mutual respect on both sides but let's remember we've all just come out of a double dose of elections with the county and the general election," he said. "And there are times when that can bring tensions to the fore. It's good that we are able to move forward and there's a very clear understanding as to what the challenges are over the next four years. Let's be under no misconception there are many challenges for local government over the next four years."

He said that the main challenge was the continued reduction in funding for local government from central government.

However, Conservative leader James Airey was less pleased with the deal, saying that he was 'disappointed'.

"I'm disappointed but I'm really disappointed for the people of Cumbria," he said. "They voted for something different and they voted for change.

"Obviously we didn't get an overall majority but when you add the figures together we had a higher percentage of the vote share."

He said that going forward he would have liked to work with all three main parties.

"I thought a cabinet made up of all the three main parties would have been the best solution for Cumbria," he said. "I think Cumbrians wanted us to be grown up and work together."

The county council will meet on June 29 at its annual general meeting to vote on the proposals.