The leader of Oxfordshire County Council has given a clear signal that the authority could bid to take over all major council services in the county.

Keith Mitchell told the Oxford Mail yesterday that the county was looking into making a bid for unitary status - which could see the end of Oxford City Council and the four other district councils.

County council chief executive Joanna Simons has been ordered to explore the possibility of creating a single council, which would absorb Oxford, the Vale of the White Horse, South and West Oxfordshire and Cherwell district councils and run services for nearly 650,000 people.

But the move has prompted a sharp response from Labour city councillor John Tanner who said if the Conservative-controlled county council's plans were adopted it would spell the end of democracy in Oxford.

He added: "The county is running scared - now they want to impose a Tory authority across Oxford. It would be the end of democracy and a disaster for Oxford."

The city council has itself already sent in a bid to the Government for unitary status which, if accepted, would see it break away from County Hall and the current two-tier administrative set-up.

And it could lead to the abolishment of county council, too.

One of the primary reasons Oxford wants to go it alone is confusion among ratepayers over exactly which council runs which services.

Although the Tories have not managed to elect a councillor in Oxford since 2002, their policies are implemented throughout the city because the county council runs services like highways maintenance, social services, education, waste management, emergency planning, trading standards and museums and libraries.

Meanwhile, the city council is responsible for housing, waste collection, environmental health, leisure and planning.

The Government is due to publish a white paper giving more details on the shake-up of local government later this year.

Oxford, which submitted its bid together with Exeter, Ipswich and Norwich, has argued that unitary status is vital if its residents are to "take charge of their destiny".

Ministers said it was possible Oxford could become a unitary council by 2009.

Mr Mitchell said: "We are ready for all eventualities. We know the city council wants unitary status.

"However, we also know that there are good arguments for an enhanced two-tier system.

"Given the lack of clarity from the Government, we also need to examine the case for a unitary county council. I am very concerned about the impact of reorganisation on public services."