BLACKBURN with Darwen and Hyndburn councils are in merger talks which could signal a radical re-organisation of local government in Lancashire.

Under the proposals, Hyndburn and Blackburn with Darwen would pool all officer services but retain two separate politically controlled councils.

Today the move was labelled a dream ticket for Tory-led Hyndburn that would help it get more control over education, social services, and transport, roles currently controlled by Lancashire County Council.

Labour-led Blackburn with Darwen would benefit from greater efficiency savings and look to attract increased grants for the larger "merged" area.

Both "unitary" authorities would also be likely to benefit from a migration of jobs currently based in Preston to add to the 7,000 already employed by the two councils.

Talks over the move are taking place as local government secretary Ruth Kelly prepares to release a White Paper in October paving the way for the council changes.

The move is similar to a merger of officers and councillors being considered by Preston City Council and South Ribble Borough Council.

If both mergers become a reality then a question mark would hang over the future of Lancashire County Council, with great chunks of the county outside its control.

But today county leader Coun Hazel Harding insisted the authority had a future.

Until the White Paper is published, the Government's view on the feasibility of the county council continuing in its present form is unclear.

But elsewhere in East Lancashire not everyone is backing change.

Coun John Hill, leader of Ribble Valley council, said: "We are not seeking any marriages and will not abandon the Ribble Valley to our big brothers."

Burnley Council favours a unitary authority for Burnley, Pendle and Rossendale. But Rossendale is firmly against and Pendle would only look at the option if heavily leaned on by the Government and if Ribble Valley was included.

At a conference earlier this month, Mrs Kelly said when the White Paper is published in the autumn, there will be "a short window of opportunity" for councils "in areas where there is a widely held view that this is the right way to move" to make their case for unitary status.

Coun Peter Britcliffe, leader of Hyndburn Council, said: "We are looking at an innovative approach and looking at becoming a unitary authority and buying in services from Blackburn.

"It could be a dream ticket for Hyndburn, it would be a great way for us to control our own destiny."

A spokesman for the Local Government Association said he had not heard of any other councils considering similar arrangements.

The two councils are already experienced in working together Blackburn took over running Hyndburn's regeneration department in 2004. The councils also collaborate on weekend noisy neighbour services.

Coun Kate Hollern, leader of Blackburn with Darwen, said: "I think it's sensible to share good practices and expertise, and if it's to the benefit of residents of both authorities then I am delighted."

But Coun Graham Jones, leader of the Labour opposition at Hyndburn, said two years ago Coun Britcliffe had said he would man the barricades against a Blackburn and Hyndburn merger.

"He seems to have changed his mind with little or no consultation on what the public might think or want," he added.

"There are many options that should be considered and there should be a full and honest discussion with residents before any proposals are put forward."

Coun Colin Rigby, leader of the Conservative opposition at Blackburn, does not oppose the plan but he said: "Having two separate councils is totally unnecessary."

He said the two councils should completely join together, take a chunk of the Ribble Valley and re-draw the ward boundaries.

He said: "We all know that the government drive is for larger councils.

"I think it's a proven fact that the unitary system has provided better services than the county council did."

Sue Crompton, Unison union branch secretary at Blackburn with Darwen, said: "We will be saying no redundancies' and we will certainly want to have a good look at any proposals."

The last time council reorganisation was toyed with by the government it formed part of the failed regional assemblies plan in 2004.