An agreement for Stafford BC and Cannock Chase DC to share leadership teams and almost all their services has been approved, saving around £1.2m.
The Local Government Association said the business case was ‘compelling’ and had been ‘well researched and evidenced’.
Cannock Chase leader Olivia Lyons said the changes would create ‘opportunities for our staff to progress in what has been a rather flat management structure’ while ‘maintaining our own sovereignty and identity’.
Stafford leader Patrick Farrington added: ‘All local authorities are facing very challenging financial circumstances and these plans can save our taxpayers money without cutting vital services to our community.
'Sharing services will also help us build capacity and resilience within the council, as well as helping us to recruit and retain staff.’
