Cornwall Council's controversial privatisation push has been dealt a fresh blow after one of the private companies bidding to run some services was reported to have pulled out of the process.

The drive to outsource services has already played a major role in the sacking of the council's leader Alec Robertson, and the selection of the new man in charge, councillor Jim Currie.

He had previously quit the cabinet over the proposals.

The two companies in the running were BT and CSC, however independent councillor Neil Burden, the new deputy leader, did not specifiy which one has thrown in the towel.

UPDATE: It was later confirmed that CSC had backed out of the process.

 Speaking on BBC Radio Cornwall, Mr Burden said: "One of the bidders no longer wants to engage with Cornwall Council because of what happened yesterday."

"I can't tell you anything at all about that. That is part of negotiations that are going on.

"I am sure things will emerge today, and all will be revealed later."

 Stuart Roden, from the union Unison said he thought the news meant the project would now be "dead in the water", and that to end up with one tender would make it unviable to proceed.