The Conservatives and Liberal Democrats at Oxfordshire County Council are close to striking a leadership deal, after both groups accused Labour of taking too long to reach a decision.

A two-party ruling Cabinet will replace the old committee system next month. The three parties have been holding talks for the past fortnight but there is growing frustration in the Conservative and Liberal Democrat camps over their dealings with Labour.

Conservative group leader Keith Mitchell said: "Labour is finding it hard to make a decision and we are closer to a deal with the Liberal Democrats."

Liberal Democrat group leader Margaret Godden said it had been difficult to have a "rational conversation" with Labour and added: "There is no doubt Labour is finding it difficult to make a positive contribution and that leaves two players in the market."

There is currently a hung council and it is hoped a two-party Cabinet will provide the clearer and more decisive leadership called for by Chief Executive Richard Shaw.

On September 4 the council will meet to agree adopting the two-party Cabinet structure. The Government need not be told who will be in the Cabinet until November 5. Labour leader Brian Hodgson said his group would not be rushed into making a decision but Cllr Godden said it would be "unacceptable" to wait until November 5 for an announcement.