Oxford City Council has joined forces with Exeter, Ipswich and Norwich in a bid for total rule free of the county council.

The Town Hall has made no secret that it wants to sever all ties with Oxfordshire County Council and be given unitary authority status - the power to run all services affecting city residents.

It has now decided to put £5,000 into a joint study with the other councils to find out how much it would cost to run a unitary and what funding is available so it can convince ministers.

Proposals have to be in by September in time for a Government White Paper and Oxford could become a unitary authority by 2009.

But county council leader Keith Mitchell has told the city to "dream on", claiming it is in no fit state to run services like schools and social care.

Under the current two-tier set-up, some services are run by the city council and others - including highways - are provided by County Hall.

If Oxford was to be given unitary status, there would be no changes to existing district council boundaries.

City council leader Alex Hollingsworth said: "The time is right.

"I would be absolutely hugely disappointed if we were not considered.

"We have a very good case and it's been put on a plate.

"The issue is all about accountability. People in Oxford voted in a council because they voted for the policies of those politicians, but at the moment, that doesn't happen in the city - it disappears in a smoke-filled room at County Hall.

"People in Oxford can't hold to account people who make decisions about their lives.

"With a unitary authority, they could kick them out."

David Miliband, the Government minister overseeing the shake-up, hinted to the Oxford Mail in March that the city council stood an excellent chance of becoming a unitary, describing the current set-up as "confusing and expensive".

But in a letter in the Mail today, Mr Mitchell says: "Oxford city (council) is rated a weak council by the Audit Commission.

"The city's latest audit report, which it sought to suppress, says it does not offer value for money.

"Is this the same Oxford city that is campaigning to become a unitary council to take over the running of our schools, social care, libraries and transport within the city boundaries?

"Dream on."

James Hehir, the chief executive of Ipswich Borough Council said: "The two-tier system leads to confusion and lacks leadership.

"Many unitaries are top performing councils - similarly there are lots of county councils that are basket cases."