Shropshire has taken a big leap towards being governed by a new and powerful all-purpose council following an historic vote at the Shirehall. A special meeting of the county council unanimously backed the business case for the setting up of a unitary authority and to submit the bid to the government in January.

A 96-seat council would replace the existing county and five district authorities and, if approved by Government, would be formed after elections May 2008.

The plan has been developed by the leaders of the county council and Oswestry Borough and South Shropshire District councils.

Malcolm Pate, Tory leader of the county council, yesterday called on members to support the plan. “I think we stand on the brink of a new era of local government in Shropshire,” he said.

Councillor Pate claimed a single authority would deliver a low, sustainable council tax level of between 0 per cent and a maximum of 3.5 per cent over the whole of the county – excluding Telford & Wrekin – for the first three years.

“And even in the fourth year, our planning assumption is for no more than four per cent,” he said.

“This is the equivalent of giving back to the council taxpayers of Shropshire some £4.6 million each year. The total saving over the first four years will be £34 million at least.”

Councillor Pate said unitary status would allow the county to sit alongside the metropolitan authorities and “not under the table fighting for the crumbs”.

Lib Dem group leader Peter Phillips said the move was 30 years overdue.

Labour’s Alan Mosley attacked what he described as the “scaremongering and negativity” of some people regarding a new authority.