THE gloves came off this week in the battle for control of Cheshire's local authorities.

At stake is who will decide how to spend £800m each year on schools, care for the elderly, children's services, roads, environment, business development and Mid Cheshire's towns and villages.

A 12-week consultation with stakeholders - not a full public consultation - began this week to get the new councils set up by 2009.

There are two plans, one for Cheshire County Council to take over the running of everything in the county, the other to split the county into two, with Vale Royal (including Northwich and Winsford), Chester and Ellesmere Port & Neston councils merging in the west and Congleton (including Middlewich), Crewe & Nantwich and Macclesfield councils joining forces in the east.

Chester City Council, which put in a Vale Royal-supported bid to cut the county in two, is already celebrating in the belief it has won the argument to scrap the county council and merge six district councils into two.

But Cheshire County Council's chief executive Jeremy Taylor has warned he could seek a judicial review if Secretary of State Ruth Kelly decides that matter.

He said that would contradict the assessment of her own Department for Communities and Local Government which gave the county's plan to scrap the six district councils, creating one single-tier authority, a 'nine out of 10' on the likelihood of achieving the agreed criteria, compared to the district council's plan which got 'seven out of 10'.

But Minister for Local Government and Community Cohesion Phil Woolas may have given an indication about they way he believes the decision will go when he said he believed the county's plan appeared to lack public support.

West Cheshire would comprise Chester, Ellesmere Port and Vale Royal councils. Chester would be the likely choice for the HQ. No site for East Cheshire has yet been chosen.

Cheshire County Council would likely move to Winsford, the centre of the county, if it took overall control.

Chester City Council chief executive Paul Durham, who is leading the districts bid, said: 'Our proposals are centred on improving things for residents by making a fresh start. They save taxpayers money, even after paying for the cost of change; they reflect best practice and are deliverable.'

He argued the county's proposal was 'unworkable' and Cheshire was 'too large' for one local authority.

Tory-controlled Vale Royal Borough Council did not make a submission but is backing the two-council solution. Chief executive Anne Bingham-Holmes said: 'Vale Royal Borough Council has backed Chester City Council's proposal for Cheshire to be split into two unitary authorities.

'This is our preferred option of those put forward, and we are pleased that it has made it to the consultation stage.'

Mr Taylor points out his organisation already has the skills and experience to operate a budget of £700m compared to the six councils' combined budget of about £100m, and is facing up to key issues like dwindling numbers in schools.

He added: 'The Government has now given us the opportunity to test the validity of our case, which we believe champions the best interests of everyone in Cheshire and meets the full criteria required by Government.'

Sir Jeremy Beecham, vice-chairman of the Local Government Association, said: 'There is no one right way to organise local government. Unitary councils work well in some areas, separate district and county councils in others.

'What matters is that local people in every area get a system of local government that meets their needs and wishes.'

'Any structural reorganisation must strengthen its ability to provide local leadership and value-for-money services while allowing it to keep on responding to local needs.'