PLANS to merge revenues and benefits services at two councils have been given the go-ahead.

The new partnership brings together the council tax, business rates and benefit teams of Hambleton and Ryedale district councils to deliver a combined service.

Officers estimate the shared management and IT arrangements of the system could save £3 for every taxpayer.

The revenues and benefits partnership will cost just under £1m to set up. It is being backed by the Government, which had pledged £685,000 in funding.

Hambleton District Council's cabinet has now given the scheme the go-ahead.

Councillor Neville Huxtable, cabinet member for council tax and benefits, said: "Now that the partnership is at the end of the planning stage, we can start to implement new systems and processes can go live.

"With approval for this scheme from both councils, we are looking forward to enhancing the service to our customers and delivering efficiency savings to taxpayers."

The partnership was backed by Ryedale District Council last month, despite a threat of legal action from staff.

Council members had initially voted against the merger, but used a loophole in the authority's rules to vote again on the issue.