Warwick and Stratford-on-Avon DCs have both agreed to merger plans that will establish a single South Warwickshire DC.
Following full council meetings, the district councils have agreed to formally submit a request to the secretary of state at the Department for Levelling Up, Housing and Communities.
The local authorities believe the merger is the best way to deal with ‘significant financial challenges’ and ensure that local government in the South Warwickshire area is financially sustainable.
According to the public consultation document outlining the merger proposals, a new merged council would save about £4.5m per year by reducing areas of duplication and creating economies of scale.
Stratford-on-Avon leader, Cllr Tony Jefferson, said: ‘We believe this is the best decision for the benefit of our residents.
‘This proposal to create a South Warwickshire DC together with Warwick gives us the opportunity to safeguard our services into the future, as well as helping us respond to any new challenges coming down the line.’
Warwick leader, Cllr Andrew Day, added: ‘I am immensely proud that our councillors have come to this brave and historic decision to go ahead, and to build a new council and shape our own destiny for the future of local government in South Warwickshire.
‘The widely-recognised need for change has not only been identified, but is now being acted upon and now, working with Stratford-on-Avon DC, we can start to build a vibrant, new, agile and strong council to serve all our residents.’