Nottinghamshire County Council has decided to drop its reorganisation plans, which the leadership had hoped would save the authority millions each year.

Councillors yesterday decided against holding a formal consultation on plans to replace the county’s two-tier system with a unitary authority.

It was hoped the plan — which financial experts Deloitte described as ‘robust’ — would deliver £27m of annual savings through a reduction in senior management positions, support services, councillors, and by finding other savings.

However, county council leader Kay Cutts today announced she would withdraw the plan.

‘Everyone knows I believe that the current system of local government is unsustainable,’ she said.

‘Our outline Business Case supports my view that there is a better way to plan and deliver services for local people who pay for them out of their taxes. However, I accept that my view is not universally supported.

‘After meeting with district council leaders and chief executives and after much reflection, I have decided to withdraw the Outline Business Case from Thursday’s county council meeting.’

Cllr Cutts did, however, warn that Nottinghamshire CC had to find more savings.

‘There is no simple solution to the significant financial challenges we face and savings will still have to be made to close the funding gap,’ she said.

‘We will need to consider radical solutions and not just look at back office functions.’