In the end, the Council decision went like this:
The Tories wanted to defer a ballot, but keep the process going (and this would mean starting the process of working out the costs again and hoping that they were right this time).
Labour wanted to stop the process, and not simply keep trying, as it is clear that tenants will not vote in favour. The Lib Dems supported this, and so the policy went through 18-16.
Afterwards, Labour leader Brenda Smith asked for a cross-party group which could really look at the Housing Department and look for areas where it could make savings without affecting service levels or the cost to the tenant. The Tories refused. I suspect that the Lib Dems would have agreed, especially as this mirrors comments made by Marcella Head.