A government-appointed watchdog monitoring Birmingham City Council has demanded that a permanent leader and chief executive are appointed as a matter of urgency following the bin strike fiasco.
The Birmingham Independent Improvement Panel has also cancelled plans to take a break from overseeing the city council on behalf of the Department for Communities and Local Government.
In a report to Local Government Secretary Sajid Javid, the panel said the bins dispute was "causing major inconvenience to residents" and there had been a setback in the council's improvement as a result of the strike.
It highlighted the recent resignation of leader John Clancy and said it had questions over whether his handling of the dispute "constituted a breach of the council's constitution and its member code of conduct".
Coun Clancy was accused of bypassing senior officials, ignoring legal advice and failing to secure the formal backing of his cabinet when he announced a deal with trade union Unite to end the strike last month.
The blurring of roles between elected councillors and full-time officials was one issue the council, with the help of the panel and the Local Government Association, was supposed to resolve.
In his report, the panel's chairman John Crabtree called for swift action to stabilise the leadership.
Currently, the council's deputy leader Coun Ian Ward is acting as leader and the interim chief executive Stella Manzie is due to leave at the end of the year.
Mr Crabtree said: "However, it would clearly be very beneficial for the leadership of the council to be resolved and a permanent chief executive to be appointed as early as possible."
The ruling Birmingham Labour group is expected to back Coun Ward as leader although nominations for the role close at 6pm on Wednesday, September 20.
And the panel is due to continue overseeing the council as the new senior staff are appointed and settle in.
Former leader Coun Clancy had vowed to get the panel out of Birmingham and lift the threat of a government take over and seemed to be on track to do just that.
However, the fallout from the bin strike means the council remains on the Government's watch list.
Interim council leader Coun Ward responded: "I will continue to work with the improvement panel to achieve the best possible outcomes for Birmingham and its citizens.
"I look forward to further detailed discussions regarding the next stages of our improvement journey."
Opposition Conservative group leader Coun Robert Alden said: "After five years of Labour running Birmingham, the improvement panel has made it clear things are worse now than they have ever been.
"We are into day 84 of the bin strike and Labour have left the improvement panel no choice but to return in full to try to get the council working.
"I am glad the panel has recognised the destructive impact on residents and communities the bin strike and other council failings have had in recent weeks.
"This is in stark contrast to the Labour administration which has regularly talked about the impact on the Labour Party not residents.
"Indeed, even the former leader's resignation letter talked about the impact him staying may have on Labour, not Labour's failing of the residents of Birmingham."