A LOCAL council has won the first stage of its legal battle to halt the creation of new unitary authorities.

A High Court judge granted Harrogate Borough Council, along with two other authorities, permission to challenge the Government's unitary plans with a judicial review.

Harrogate, Congleton and Shrewsbury and Atcham councils say Secretary of State Ruth Kelley is acting beyond her powers by inviting councils to restructure.

Government lawyers denied the claim and argued that any delay in the planned reorganisation would cause "irreparable financial prejudice" and could cost up to £21m in public money.

But Mr Justice King ruled that the councils did have an arguable case.

He said the challenge should take priority in courts lists and be heard as quickly as possible.

Andrew Arden QC, for the three councils, said they had the support of 19 other local authorities threatened with abolition under the unitary proposals.

He said: "Democracy is worth preserving.

"This case concerns who survives as a local authority - this is the Full Monty of reorganisations."

The barrister said that 88 councils across the country would be affected by the plans.

In response, lawyers acting for Ms Kelly said the court challenge was premature.

James Eadie, for Ms Kelly, said that all the Secretary of State had done so far was to "consult on and filter down" proposals.

He stressed that she had not yet reached any final decisions.

The councils were also allowed to proceed with claims that a lack of consultation with the public, means that Ms Kelly can not be satisfied under her own criteria that the proposals have a "broad cross-section of support".

All seven of the district councils in North Yorkshire oppose the county council's bid to form one large authority.

If the merger went ahead in the county, the number of councillors would be cut from 354 to 144.

In County Durham, the results are expected tomorrow from a unitary referendum conducted by the district councils.

As in North Yorkshire, Durham's district authorities have come out against the county council's bid for unitary status.