KEY council services in South Oxfordshire and the Vale of White Horse could be merged in an attempt to save £750,000 a year.

Up to nine senior managers could face the axe in the move and both councils said other levels of management could be re-examined to improve efficiency.

But South Oxfordshire District Council said restructuring would not increase the risk of future redundancies, while officers at the Vale said any future redundancies would not necessarily be a direct consequence of the move.

The aim is to create a new shared management team which would take control of vital services for both areas.

Services like housing, planning and environmental health would operate under a new team, headed by one chief executive and made up of employees from both councils, if the new structure is agreed next Wednesday.

Both councils insisted it would not be the first step to a merger, although only a few authorities have teamed up in such a way.

Terry Stock, chief executive at the Vale of White Horse District Council, said: "The proposals in this report do not directly affect any of the existing arrangements other than for senior managers."

Jerry Patterson, deputy leader of the council, said: "The benefits of this are that it produces better management and results in better services. That is the primary reason for doing it. It also saves the councils a multitude of money and it opens up a host of strategic possibilities on how the two councils can work together in the future."

He insisted: "This is not a merger or a plan to axe any councils, but a partnership between neighbouring authorities for the benefit of everyone across both districts."

Nine senior managers could be made redundant as part of the restructuring.

That could cost the Liberal Democrat-run Vale council and Conservative-controlled South Oxfordshire council - which between them employ 566 people - up to £1.2m in pay-outs.

The leader of South Oxfordshire District Council, Ann Ducker, said: "We have been working closely with colleagues in the Vale for some time as financial pressures increase, with the Government reducing the amount of grant it gives us. Shared management arrangements, bringing together our two management teams, makes more sense than cutting services.

"We are still two independent councils, we set our own budgets and we have our own priorities, so just because there are shared services, we will still run independently."

In a report on the proposals, the two chief executives, Mr Stock and David Buckle, said the councils had a long history of working together.

They recognised senior staff would have to split their time between the two council bases at Abingdon and Crowmarsh Gifford, allowing less time for face-to-face meetings.

However, they said the councils would be in a position to pick the strongest set of managers and expected a return on their investment within two years.

If the decision gets the go-ahead, councillors hope the new chief executive will be appointed by September. They will have to choose between the two current chief executives - one of whom will be made redundant.

Mr Stock said: "People on the street should not notice a difference because they don't see the senior management team.

"What this will do is enable the services to be delivered more efficiently and effectively."

The two councils are already committed to a shared waste collection and street cleaning service, and for the past 18 months they have employed a joint head of finance.