Neighbouring councils West Oxfordshire DC and Cotswold DC are set to debate plans to merge more senior management roles in a move that could save up to £1.2m a year.

Each authority would save £600,000 by 2018/19 under the proposals to be debated by Cotswold DC tomorrow, and by West Oxfordshire DC next Wednesday.

Since 2008 both authorities have been run by a joint chief executive, David Neudegg and already share two out of four directors.

Mr Neudegg has issued a report ahead of the meetings, which argues the current strategy has proved ‘effective without causing major disruption to services and staff which has been evident in some other councils'.

‘However, to drive out any further significant efficiency savings, it will be necessary to commit to a higher degree of management and service integration.'

‘It is now considered necessary for the structures of the two councils to be aligned as far as possible in terms of service areas.'

As part of the plan, the number of directors would be cut from four to three and the number of service heads reduced from 17 to 12 – with the effect that some officers would run services in both councils.

Departments under consideration for shared heads include revenues and housing support, business information and change, legal and property services, customer services, environmental services, public protection and leisure and communities.

However, planning and democratic services would continue to be run separately within each council.

Should both districts approve the plan, it is envisaged that new structures would be phased in from early next year and be fully operational by April 2014 – with a view to making initial savings of £300,000 by 2015.

Cllr Barry Norton, leader of West Oxfordshire DC said he anticipated the management review would have no impact on frontline services for residents.

‘This is an evolutionary move, rather than evolutionary.  It's no big bang,' he said.