Labour are to run Lancashire County Council in a minority administration supported by the Liberal Democrats.
The deal between the two parties saw the Liberal Democrats support a proposal for Jennifer Mein, leader of the Labour group, to become leader of the county council.
The proposal was passed at Thursday’s Annual Meeting of Full Council at County Hall in Preston.
Following the elections on May 2 no single party had the 43 seats needed to take control of the council and it took until this week for a deal to be thrashed out.
County Councillor Mein said, “We are delighted that we will now have the chance to deliver on our pledge for jobs, especially opportunities for young people, and to help protect the most vulnerable in society.
“The reductions in central grant funding will make our task more difficult but we will ensure that we put the people of Lancashire at the heart of our plans for the future.
“We will work hard to serve the people of Lancashire and make it a county we can all be proud of.”
County Councillor Bill Winlow, leader of the Liberal Democrat group, said, “I am very pleased with this agreement.
“It is very good for the people of Lancashire and will provide a green, fair and strong economy for our county.
“We are looking to protect front-line services at a time of major budget reductions. We will work hard to reduce duplication in service provision and to share services with other districts and counties.”
David Borrow was elected deputy leader and Michael Devany chairman.
The number of councillors for each party is Labour 39, Conservatives 35, Liberal Democrats 6, Independent 3, Green Party 1.