COUNCILLORS face a political deadlock after election results gave two parties equal seats.
The recent elections left Great Aycliffe Town Council, Newton Aycliffe, with 15 Labour candidates and 15 independents. It is now feared, with only two political divisions with equal standing, progress could be hindered.
The council is in for its first difficult decision tonight when it elects a leader and deputy leader.
Councillor Bob Fleming, who represents the Shafto St Marys ward said the Labour group was expected to select its preferred candidate at a meeting last night.
He said: "Quite how the overall leader will be selected and who that will be, or whether it is a question of shared power, is not yet known, but it's not just a question of the leadership battle.
"Without one ruling party, it is obviously going to be difficult to make decisions and get things done, which could be damaging for the town."
Billy Blenkinsopp, independent for Neville and Simpasture said: "I've been asked to stand as leader for the independent councillors and we will be looking for shared power.
"At the end of the day I am prepared to sit down round the table with anyone if it is for the good of the town and the people who voted for us to represent them."
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