Cllr Gordon Munro has had the Labour group whip removed following his abstention on the Council budget vote.
The Leith councillor believes the SNP, Labour’s partners in the sc-called Capital Coalition, is not standing up for Edinburgh.
Gordon Munro said: “I stand by my decision to abstain in the budget vote. Edinburgh needs full and fair funding. It needs to prosecute its case forcefully which it commits to do in the coalition agreement.
“I accept the decision taken by Edinburgh Labour.’’
Labour Group leader Cllr Cammy Day said: “As part of our Labour Party rules, and by not supporting the budget proposals, an internal disciplinary process from Edinburgh Labour has agreed that the Labour Whip will be removed from Cllr Gordon Munro until return of Summer recess 2021.
“Gordon is a long standing, hard working councillor and a valued member of the Labour Group.”
Despite losing the Labour whip Councillor Munro, who also abstained in last year’s Budget vote, will still be expected to support the Capital Coalition in any forthcoming votes.