PRIME MINISTER David Cameron and Oxfordshire's other MPs have backed a bid to abolish Oxfordshire County Council and carry out the biggest shake-up of local government since 1974.

The county's four district councils and Oxford City Council have proposed four new 'unitary' councils – which would handle all local services – with social care handed to the National Health Service.

These would replace the county council, which currently employs about 4,700 people and is responsible for education, social services, the fire service, libraries, most roads and transport planning, trading standards and waste and recycling sites. 

They would also take in Cotswold District Council, which has partnerships with West Oxfordshire District Council, and South Northamptonshire Council, which works with Cherwell District Council.

A combined authority covering all of the new councils would have responsibility for transport and major roads.

A joint statement issued by Oxfordshire's MP - David Cameron, Nicola Blackwood, Andrew Smith, Victoria Prentis, Ed Vaizey and John Howell - this morning said it had "a lot of merit.

They said: "This is a very interesting proposal – and one which all of us, as Oxfordshire’s MPs, feel has a lot of merit”.

Mr Cameron, Witney MP, added: “West Oxfordshire is one of the best run and most cost effective councils in the country and we are, after all, the gateway to the Cotswolds, so I see a lot of advantages in exploring this option.”

The new arrangements would be the biggest shake-up of government in Oxfordshire since the Local Government Act 1974 and take about two years.

It would create:

• Southern Oxfordshire Unitary Authority, replacing Vale of White Horse and South Oxfordshire District Councils and serving 261,867 people

• Oxford City Unitary Authority, replacing Oxford City Council and serving 157,997 people

• West Oxfordshire (Cotswold) Unitary Authority, replacing West Oxfordshire District Council and Cotswold District Council and serving 192,795 people

• Cherwell (South Northants) Unitary Authority, replacing Cherwell District Council and South Northamptonshire Council and serving 232,658 people

District council chiefs said it would save taxpayers cash by cutting bureaucracy. 

Vale of White Horse District council leader Matt Barber said: "It will allow decision-making and services to better reflect the different challenges and priorities of the people we serve. 

"And it will also build on our strong track record of sound financial planning and efficiency."

Dr Joe McManners, chairman of Oxfordshire Clinical Commissioning Group, added: "We support the ambition of the councils to bring health and social care closer together as this will improve outcomes for patients. We will wish to work closely with them in developing these plans."

The proposal has been put forward in an effort to secure a devolution deal for Oxfordshire with the Government, with more than £1.3bn of cash for improving roads, schools and public transport up for grabs.

It is understood ministers told council chiefs that a deal would require either an elected mayor for Oxfordshire, or for local authorities to reorganise and become simpler.

But they have refused to consider a mayor and claim it will create more bureaucracy, with MPs - including Prime Minister and Witney MP David Cameron - also said to oppose the idea.

The county council last week proposed a single council for all of Oxfordshire, but this has also been rejected by the districts.

According to a report commissioned by the county council last year, creating one authority could save £33m overall a year. The districts have said its findings included errrors.

Ian Hudspeth, county council leader, has urged his counterparts to consider an elected mayor, warning voters would "never forgive" them if they missed the opportunity for extra cash.

In exchanges seen by the Oxford Mail, he wrote: "The devolution bid we have is very exciting.

"Yet we are going to reject this opportunity for all this additional funding. Why?

"Because we aren’t prepared to consider a mayor? 

"Our reason is that it would add another layer of administration to the system... well why don’t we have a sensible conversation about removing some of the administration and duplication?

"Let’s talk about local government in a unitary context and slashing the waste in administration."

Speaking this morning, Mr Hudspeth added: "I welcome the opportunity to have this debate, because having this conversation will allow us to determine what is best for people in Oxfordshire.

"What the districts are proposing would probably involve four chief executives and some 200 councillors. Is that the most efficient option? 

"I would like to see all the facts and figures, but the key issue is that we reduce bureaucracy. If this doesn't do that, it would not be sensible."

The district councils said they would carry out a public consultation on their proposals, which have not yet been costed, during the summer.