Labour have seized control of Edinburgh council after securing the support of the Conservatives.
The alliance by pro-UK parties means that the SNP have been turfed out of office.
Ousted SNP council leader Adam McVey said: “It is truly insulting to people across our city for Labour to try and hide the deal they are doing.
"If they are too ashamed to admit it then maybe they should reflect on that and not try to trick people into believing their spin. This is a coalition and the SNP will hold Labour, the Tories and Lib Dems to account."
The SNP and Labour have run the council over the past decade, but a national ban on formal coalitions announced by Anas Sarwar last month kyboshed another deal.
May’s council election result in Edinburgh was inconclusive, with the SNP coming first but no party coming close to a majority.
A plan for an SNP/Green coalition was advanced, but the arithmetic meant that even this two party pact fell short.
Labour, who came second in the election, put themselves forward to run a minority administration, an idea backed today by councillors after receiving Lib Dem and Tory backing.
Cammy Day, Labour’s group leader, becomes council leader, replacing SNP Edinburgh chief McVey.
However, the SNP blasted Labour for taking up the reigns on the back of Tory support.
In a passionate debate, McVey repeatedly accused Labour, the Tories and the LibDems of agreeing a "coalition", saying: "I suspect when we have the next by election or the next election in the city we will find out exactly what Labour voters think of them entering coalition with the Conservatives.
"This arrangement, this is coalition, is unstable. There's a political reality that will hit it very quickly."
He added: "This is the first time in living memory the largest party will not be in the administration."
Labour councillor Scott Arthur said Labour's manifesto was the "most left wing" programme the city would see in a decade.
Lib Dem councillor Kevin Lang backed Labour and accused the SNP in the city of a “nauseating sense of entitlement”.
Tory councillor Iain Whyte also supported Labour and dismissed the policy plan of the SNP and Greens as "virtue signalling”.
SNP councillor Neil Gardiner dismissed the way Labour had come to power, describing it as a "coalition" with the Tories in all but name.
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