The two biggest employers in Powys could merge in a groundbreaking move which is aimed at streamlining expenditure and improving their services.

Powys County Council and Powys Local Health Board will meet in September to discuss the potential benefits of such a move.

A report released yesterday to members of the county council’s board recommends the organisations should pursue a merger.

The report was commissioned by the county council and health board in an attempt to find out how they could work together much more closely.

Talks had already been held on the possibility of forming a “partnership” under one chief executive.

At the moment both organisations are operating under temporary chief executives – Jeremy Patterson for the county council and Judith Paget for the LHB.

The move follows the resignation of council chief executive Mark Kerr this year following comments in an electronic newspaper article on councillors.

But members were told yesterday how a complete merger could produce much greater benefits.

Councillor Michael Jones, chairman of the county council board, said: “This report is significant and could lead to radical and innovative changes in the way that public services in Powys are organised.

“Most importantly, it could lead to further improvements in the services we provide to the people of Powys.”

Chris Mann, chairman of Powys health board, said that the possible merger would bring Powys to the front of groundbreaking improvements in public services.