THE gloves are off in the battle over who should provide council services in Oxfordshire.

The Tory leadership of Oxfordshire County Council says it will look into scrapping the five district councils, including Oxford City Council, in a strategy certain to split local Conservatives.

And with Oxford City Council already seeking unitary council status, allowing it to run all the services in the city, South Oxfordshire and Vale of White Horse District councils are now to investigate creating a single unitary council covering the whole of southern Oxfordshire.

The announcement came as County Hall began its own fight for survival in controversial style.

The Tory-controlled county council cabinet is contemplating a single council responsible for all services in the county. But the decision will infuriate district councillors.

With the Government committed to producing a Local White Paper in June, the stakes are looking increasingly high for councils in Oxfordshire. Councils expect to be invited to come forward with proposals in the autumn, with new arrangements to be in place by 2009.

The prospect of Oxfordshire County Council and Oxford City Council fighting each other over the future of local government, could destabilise the work of both councils.

The idea of a unitary council for the county is one of two options being investigated by the county council.

Oxfordshire County Council leader, Keith Mitchell, said the cabinet's preferred choice was for "an enhanced" two-tier system, which would involve the county and district councils working together more closely on issues like waste, sharing offices and staff, with a single contact number.

Mr Mitchell said the option of a single council for the county was being looked at with reluctance. The cabinet feared that maintaining two tiers might not be an option and it would be a mistake to wait until the White Paper to learn what choices were on offer.

Mr Mitchell said: "Given the lack of clarity from Government, we are having to prepare for all eventualities. We may not be presented with the status quo as an option.

"I remain concerned about the impact of reorganisation on local public services. We would have liked to work with the districts on creating an enhanced two-tier system if Oxford City Council had not jumped the gun."

He said the city had acted in "a pre-emptive way" by declaring its plan to seek unitary council status and commissioning research to support its submission.

But the Conservative leader of West Oxfordshire district council, Barry Norton, said Mr Mitchell had made a tactical misjudgement.

"I am really astounded that he has gone against stated Conservative policy in suggesting he will look at a county unitary council.

"We think the Government is playing a clever game in trying to get rid of well-run Tory councils.

"I fear Mr Mitchell has been spooked by the city council to put this forward. It is regrettable, premature and destabilising for district councils."

The leaders of Tory South Oxfordshire and Lib Dem Vale of White Horse District Councils responded by issuing a joint statement indicating their interest in creating a single council for South Oxfordshire, serving a combined population of nearly 250,000.

It is certain to reignite the campaign for three unitaries to be created in Oxfordshire for the city, the north and the south, to be responsible for services such us education, social services, libraries and highways as well as current district council services.

The two councils already have a strong track record of working together, and recently put in place a combined finance, revenues and benefits team under a single Head of Finance who will work for both councils.

South Oxfordshire Leader, Ann Ducker, said: "Up to now the debate about unitary councils has tended to focus on urban areas like Oxford. We feel that there are strong efficiency and effectiveness arguments for unitary rural councils too."