It follows elections earlier this month that left no party in overall control of the council.
Fifteen Conservatives were elected out of 36 councillors making them the largest single group.
However, they failed to establish a coalition with any other party on the council.
The partnership's agreed to establish a cabinet, with the leader of the Liberal Democrats on Torbay Council as Leader of the Council and the Independent Daren Cowell as Deputy Leader of the Council. There will be three Independents and four Liberal Democrats in the cabinet.
Officers of Torbay Council have identified eighteen million pounds worth of Conservative government cuts and budget pressures that the council will have to deal with.
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