Workers at Vale of White Horse and South Oxfordshire district councils could share an office block to save taxpayers up to £400,000 a year.

The Abbey House office in Abingdon or SODC’s home in Crowmarsh Gifford, near Wallingford, could close under the proposal – or a new office could be created at Milton Park, in Didcot, to host the two authorities.

Both councils have already made significant savings by sharing staff to run services. The new move could mean further redundancies, although no details have yet emerged.

David Buckle, chief executive at both councils, told the Oxford Mail earlier this month that sharing a building would make sense.

He said: “I make no secret about the fact that I want to discuss accommodation. We are working out of two offices and it is not efficient.”

Mr Buckle said both offices could accommodate about 400 staff, but currently contained only 250 staff each.

He added: “It doesn’t make sense so we need to come to a decision and there is a big saving to be made by that.”

Matthew Barber, leader of the Vale council, said: “David Buckle is preparing a report on this which will come to cabinet in the summer.

“No-one really cares where our senior managers are based, although members of the public do want to be able to visit a council office and talk about planning or environmental health.

“There are potential cost savings, but we will only go down this route if we can protect public services.”

Elaine Hornsby, chairman of Wallingford traders’ group Wallingford in Business, said losing 250 people would cause trade to suffer, in particular the lunchtime trade.

She said: “It will have a big impact.

“Every loss of a customer is a serious one,” she added.