Two-tier authorities "caused confusion" about responsibilities

Minister Phil Woolas said cutting one of the two tiers of councils - district or county - could save �200m a year.

He also shortlisted bids from Cornwall, Cumbria, Durham, North Yorkshire, Shropshire, Somerset and Wiltshire to become the sole council in their areas.

If approved the district councils in those counties would disappear.

SHORT-LIST COUNCILS Bedfordshire County Council Bedford Borough Council Cornwall County Council Cheshire County Council Chester City Council Cumbria County Council Durham County Council Exeter City Council Ipswich Borough Council North Yorkshire County Council Northumberland County Council Northumberland Districts Norwich City Council Shropshire County Council Somerset County Council Wiltshire County Council

There will now be a 12 week consultation with the final decision being taken in July, with the new structure coming into place in April 2009.

Local authorities had to fulfil criteria relating to affordability, strong leadership, improved public services and support. Twenty six councils had applied for unitary status.

Local government minister Mr Woolas said an example of confusion was where grass verges were maintained by the parish council, the pavement was kept clean by the district council, while the county council looked after the road.

The restructuring was included in the Local Government White Paper last October.

Mr Woolas said: "The bids that local authorities submitted show that they are up for improving the services they offer to their communities by making them more responsive, effective and efficient.

"We have been impressed by their quality, value for money and their cross section of support which is why we can now go much further and proceed to the next stage in 13 areas."

'Too remote'

While North Yorkshire County Council had gone through to the next stage, district councils in the area were not pleased.

"Creating one council would produce an authority too remote to deliver truly local services or community leadership," said Peter Simpson, from Hambleton District Council but speaking on behalf of all the district councils in North Yorkshire.

"There is no need for a complicated restructuring that is someone else's solution to an ill-defined problem."

The region's 580,000 residents would be surveyed about their views of a single council covering its 3,103 sq miles.

"District council leaders are concerned that nowhere in all this consultation does the public feature - the very people that this reorganisation affects and who will end up paying for it in some way," he said.