This is what democracy looks like. If a political group can work together effectively and consistently achieve more than 50% of the vote, then they will naturally control the body. As long as they operate within the boundaries of legislation, there is nothing inherently wrong with that—it’s exactly how governance works at every other level, from district councils to national government.
There’s also no good reason why parish and town councils should not be contested and run by political groups. In fact, in many cases, it leads to better-performing councils because groups are working collectively toward clear policy aims and have a shared sense of accountability.
Of course, transparency and adherence to the rules are vital in any political system. For example, as you’ve pointed out, the LGA 1972 states that two councillors are required to call an EGM, and standing orders cannot override that. It’s good to see this was clarified. But it’s important to separate genuine procedural concerns from the broader debate about political groups on councils. They’re a normal and often positive feature of local democracy.