THE Conservatives have been accused of deserting one of Scotland’s most troubled councils after their withdrawal left the administration in turmoil.

Eight Tory councillors in Moray walked away from a coalition they formed last year with Independents after a row about how to manage and modernise the authority.

Council leader George Alexander, who warned in November that Moray could be “bankrupt” by 2019, is now in talks with opposition parties.

The split followed a row over the advertisement of two £90,000 management posts.

Tory group leader Tim Eagle said: “It is with great regret that we have decided that we cannot continue. Moray Council faces enormous financial challenges and in our opinion there needed to be a much more developed programme of change and transformation along with a review of senior management and how the council is structured.

"There is clearly no appetite for the changes we feel are essential and the result is deadlock.

"We are very unhappy about the lack of progress that has taken place in recent weeks.

“We simply cannot allow the situation to drift any longer. I hope that Councillor Alexander, for whom I have great personal respect, will reflect on what has happened and why.

“Our door is always open but we will not participate in the administration unless there is a commitment to change and reform.

"Unless we do that we will see the essential services the council provides sliced away."

In November, the Accounts Commission warned Moray was liable to run out of reserves within two or three years because of its financial problems.

The same month, Tory councillor Walter Wilson quit the party in protest against budget cuts, accusing his colleagues of having “extreme right-wing views”.

Moray Council said five independent councillors and one non-aligned Conservative were now effectively running a minority administration.

A spokesman said: “The council leader is in talks with opposition parties. Senior management are meantime working with elected members to assist the way forward, and a further update will be issued as the situation progresses."

The SNP said it was ready to talk to Labour and Independents about a new coalition.

SNP co-leader Graham Leadbitter said: “After a series of split votes from the Tories and a complete split amongst them on the approach to a Management Review they have clearly finally fallen apart.

“The lack of vision and strategy from the Tories has been apparent right from the start and they have now deserted the Council rather than produce a Strategic Plan.”

Fellow SNP co-Leader Shona Morrison added: “The Tories have marked their first anniversary in Administration by quitting, having not been able to produce a corporate plan or strategy to deal with the issues facing the Council.