LOCAL authorities could disappear under plans to devolve decision-making from Whitehall, councils have warned.

The proposals, announced today, could see the scrapping of city- and town-based district councils through mergers, creating bigger “strategic” authorities.

This would take decision-making further away from local communities, district councils argued.

They also warned that underfunding had “pushed local services to the brink.”

Deputy Prime Minister Angela Rayner, whose brief also includes local government, said that devolution of powers from Whitehall would help “avoid duplication and give our cities and regions a bigger voice.”

Local Government Minister Jim McMahon said that merging councils could save £2 billion and that some local authorities would be closed or merged under the reorganisation.

The District Councils Network (DCN), part of the Local Government Association (LGA) that represents 317 English councils, warned that the plans could create “mega councils,” depriving the public of local representation.

Councillor Hannah Dalton, DCN vice-chairwoman, said: “We’re concerned that any creation of mega councils will prove the opposite of devolution, taking powers away from local communities, depriving tens of millions of people of genuinely localised decision-making and representation.”

LGA chairwoman Louise Gittins said devolution could “play a huge role in promoting inclusive economic growth, creating jobs and improving public services.”

But she said that while councils were open to change, “we remain clear that local government reorganisation should be a matter for councils and local areas to decide.”

She called for “a significant and sustained increase in overall funding” for councils, including “compensation for the changes to employer National Insurance contributions announced in the Budget.”

A statutory consultation on the plans will take place.