The Government threw out Oxford City Council's bid for unitary status because they thought it was too costly and would not deliver services.

The Oxford Mail has obtained a copy of the official letter council chief executive Brian Dinsdale was sent in the wake of the failed submission.

If successful, the current two-tier set-up would have been abolished and three new councils created for Oxford and the north and south of the county.

Ruth Kelly's Department for Communities and Local Government had said Oxford's bid stood a "reasonable likelihood" of having a cross section of support, delivering leadership and engagement.

But they said it stood "little likelihood" of demonstrating affordability or service delivery.

Ms Kelly said the city element of the bid was convincing, but added there was an "absence of detail" in the north and south Oxfordshire proposals.

Mr Dinsdale said: "I dispute the affordability criteria because the cost of the proposals have been independently calculated.

"I think the letter is wrong and the DCLG lacks ambition in their analysis.

"I think the county council put too much emphasis on the performance assessment of the city council, bearing in mind a completely new council would be created."

County council leader Keith Mitchell said: "We must get our heads down and make our system of local government work even better than it already does."

City council leader John Goodard said: "The system we were proposing would have brought councils nearer to the people."