The new leader of Birmingham City Council has been urged to work with the business community to promote jobs and "healthy growth" by the city's chamber of commerce.

Chamber chief executive Paul Faulkner offered his congratulations to Labour councillor John Clancy who secured the leadership in a close vote.

Mr Faulkner said: "We are under no illusion that this remains a difficult time for Birmingham City Council, particularly within the current funding environment.

"While times have been challenging for the public sector in Birmingham, our private sector remains strong.

"Last year, the city's private sector created over 21,000 jobs, the highest of any of the core cities, while public sector employment fell by 10,400 jobs.

"We hope to see Coun Clancy recognise this great strength and work with businesses to facilitate the healthy growth of our city and communities.

"No message has been louder and clearer over this leadership election than the need for Birmingham City Council to boost its meaningful partnership working."

Coun Clancy's rival Penny Holbrook, who lost out by a single vote, issued her own statement calling for unity among the Birmingham Labour group.

The member for Stockland Green finished with 37 votes to Coun Clancy's 38 in the final round of voting.

Speaking to colleagues after the vote, she said: "To have my name on the ballot paper and to have had so many of you put your trust in me to lead has been an incredible privilege.

"I will continue to serve the people of Birmingham as I always have, working with the residents of Stockland Green towards a better future and, in the cabinet with John, to drive the changes that I know we need in every way that I can.

"Let's carry on working together and with the new leader to make Birmingham the first city."

It was a note of conciliation after a four-week leadership campaign which, at times behind the scenes, turned bitter.

Yardley MP Jess Phillips, also a city councillor who supported Penny Holbrook, tweeted: "I can't pretend, because it's not in my DNA, that I am not disappointed with the result in Birmingham tonight but I wish John Clancy the best."

Opposition Conservative leader Robert Alden offered this: "Congratulations to John Clancy we will of course work with him where we have common ground to help turn around Birmingham City Council."

Coun Clancy's friend and close political ally, Euro MP Sion Simon, said: "I've no doubt that John will be the political change that Birmingham needs right now.

"We're at such a critical turning point here in the West Midlands with the formation of the combined authority and a city like Birmingham needs strong, unwavering leadership and I know John is up to that challenge."

Lib Dem group leader Paul Tilsley also offered his congratulations to Coun Clancy for securing "one of the most difficult jobs in local government".