Two councillors at the centre of a fraud investigation have resigned.

Braintree Labour councillors Alisdair Thompson and James Unsworth stood down amid allegations of housing benefit fraud, which they both deny.

Their resignations mean Labour has lost overall control of the council.

Police yesterday confirmed neither man has been charged.

On Monday the councillors wrote to chief executive Annie Ralph offering to quit.

Council leader John Gyford said yesterday: "They offered their resignations and these have been accepted. Although under investigation, they are still entitled to the presumption of their innocence.

"However, they came to the conclusion that it is in the best interests of all concerned for them to stand down."

Mr Gyford said they had not given reasons for the resignations but he believed they thought it was the "best thing all round for those concerned".

He stressed: "They have always maintained their innocence."

The identities of the two councillors were made public at a council meeting last week. They were immediately suspended from the council's ruling Labour group.

Their shock resignations mean Labour's slim two-seat majority has vanished.

It remains the majority group with 29 seats - the same number as the rest of the parties put together. Labour would retain control on the chairman's casting vote.

The resignation will trigger by-elections in the Braintree central and east wards. They are not expected to take place before February.

Braintree Labour councillors Alisdair Thompson (left) and James Unsworth (right)

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