DIVIDING lines that could indicate who will rule Liverpool town hall emerged last night.

The local election in May could see the Liberal Democrat administration – which currently enjoys a majority of one with 46 seats – lose overall control.

Labour is expected to make gains, but if the party – which has 39 seats – cannot win enough wards, there could be a hung council.

It would leave the Liberals, who currently have three councillors, and the Greens, with two, holding the balance of power.

Last night’s budget meeting was an indicator of where alliances might be sought.

The Lib-Dem administration accepted three Liberal amendments.

Earlier in the day, council leader Warren Bradley had branded the Greens’ proposals as “stupid” and “rubbish”.

While many of the budget suggestions of the Labour party and the Greens were identical.

Both parties wanted to make arrangements to sell the adult residential college at Burton Manor, in Wirral, to save £230,000.

Both wanted to scrap the council’s City Magazine.

And both wanted to cut payments made to assistant executive members to save £70,000.

Liberal leader Steve Radford said: “We will support any administration that proposes sound financial management.”