The establishment of a unitary authority covering the seven second-tier authorities within Leicestershire CC could deliver annual £31.4m savings - big four consultancy firm EY has estimated.

Initial set-up costs of around £13m for a unitary structure would be recouped in little more than a year from lower management and support service costs, according to the report – which was commissioned last year by Leicestershire following high-level political talks with constituency MPs.

According to EY's breakdown of the annual £31.4m savings figure, £4.8m could be made from reducing senior management posts, £9.7m from cutting middle management positions, £1.3m from cutting councillor numbers from 316 to around 100 and a further £1.3m from lower costs of running local elections.

In addition, £11m savings could be made from back-office and property efficiencies and £3.3m from integrating and redesigning services.

Potential savings could lower average Band D council tax levels by 3.1% a year and the number of councillors in Leicestershire could fall from 316 at county and district level to around 100 in a unitary structure.

Leicestershire leader, Cllr Nicholas Rushton, said: ‘People who responded to our budget consultation last summer said they wanted fewer councillors and public service organisations.

‘And when we briefed MPs about our financial situation, they mooted the idea of a unitary council,' he added.

Cllr Rushton said he would not comment on the conclusions or launch an immediate campaign, but stressed the need to deliver £110m budget savings by 2018 and reduce frontline services.