The three main political parties in Brighton and Hove have been unable to agree a budget this evening.
In a series of votes at Hove Town Hall, Labour councillors backed five amendments by the Greens.
But when the budget was put to the vote, the Greens abstained.
As the Labour administration now has fewer councillors than the opposition Conservatives, the budget was not passed.
The meeting has been adjourned so that the party leaders can hold private discussions to try to find a way through the deadlock.
Labour and Green councillors voted together 30 to 21 to defeat proposed Conservative changes to the budget and pass Green amendments.
The first of the Green changes to the budget puts an extra £345,000 into substance misuse services, sexual health services and day services for people with learning disabilities.
A second Green amendment includes a saving of £38,000 by scrapping free parking for councillors in the Norton Road and The Lanes car park.
The council’s chief financial officer David Kuenessberg said: “Both car parks are popular and often full and therefore the risk of the forecast income not being achieved is considered to be relatively low.
“Members currently allocated parking spaces or passes are entitled to an alternative subsidised annual bus pass.“
The third amendment would reduce the cuts to the library service from £242,000 by £121,000.
It would also reduce the cuts to respite care – giving breaks to families with disabled children – from £140,000 to £70,000, and contribute £38,000 to community transport for older people.
Increasing borrowing by £2.1 million was also agreed, to take the pressure off the temporary housing budget.
The fifth amendment would reduce the amount set aside for reserves relating to the council’s waste private finance initiative (PFI) project from £4 million to £3.6 million. This would release £400,000 in one-off funding for residential placements for people with high support needs for two years at £200,000 a year.