Sixteen councils bidding for unitary status have taken a step closer to merging their services after making it to a government shortlist.

The announcement is the latest development in the government’s long-term plan to make local services more efficient, as described in the White Paper on local government published in October 2006.

The restructuring of local councils would see departments currently working under separate entities come under one roof, in an attempt to avoid duplication of services.

Local government minister Phil Woolas said: “In some areas maintaining the grass verges can be a matter for the parish council, keeping the pavement clean would be the responsibility of the district councils and keeping the road clean the county council.

“If implemented, the successful proposals could save up to £200m each year which could either be directly transferred into improving front line services or used to reduce council tax bills.”

The successful proposals will now be subject to a 12-week government consultation before a final decision to proceed to implementation is made in July.

The councils on the shortlist include County Councils as well as city and borough councils.

In Bedfordshire, the county council is looking to form a single unitary authority to govern the entire county apart from the town of Bedford, as the Bedford Borough Council would form a unitary authority for the town.

Other councils on the shortlist include Cornwall County Council, Durham County Council, Norwich City Council and Northumberland Districts.