Sixteen areas across England that are currently being considered for unitary status will be ranked in order of priority should too many bids emerge as eligible, it was announced yesterday.

Local government minister Phil Woolas said that the move would be made to ensure that any local government restructuring that does go ahead will benefit the taxpayer.

The prioritisation plan will safeguard against an outcome in which more unitary bids emerge than can be afforded by the taxpayer.

Phil Woolas said: "Re-structuring has the potential to make a real difference to local communities and cut council tax.

"But if there are more proposals that meet the criteria … than can be afforded under sound fiscal rules, then we must ensure that the proposals that go forward are the most cost-effective and deliver the greatest improvement in services.

"That is why we are publishing a consultation on the means for prioritising proposals today and asking stakeholders for their views," he added.

The initial assessment for unitary proposals focuses on whether a plan is affordable, whether it will provide stronger leadership, whether it will improve public services and whether it will empower local communities and have a broad cross section of support.

The consultation on prioritisation will be completed by July 18th 2007.