THE Government jumped the gun in approving plans for North-East super-councils, it was claimed yesterday.

The accusation came during a High Court hearing that could decide whether County Durham's two-tier council structure is replaced with a single unitary authority.

Shrewsbury and Atcham Borough Council, in Shropshire, which would also disappear under the plans, says the Government pre-empted powers it will get this autumn.

The council claims the then Communities and Local Government Secretary Ruth Kelly wrongly used the Local Government and Public Involvement Bill, which has been approved by Parliament, but has not yet passed into law.

Andrew Arden QC, for the council, told Mr Justice Underhill and a packed London courtroom: "The Secretary of State cannot say: 'I have an idea, let's lay an order'."

The council is expected to give further evidence to support its case, before the Government gets the chance to puts its side.

The hearing is expected to finish by the end of today, but a result is not expected immediately.

It is thought the court will give both sides up to two weeks to prepare before handing down a ruling affecting plans for unitary councils across the country.

Thousands of local government workers, whose futures remain unclear, will be eagerly awaiting the outcome.

It is thought about 180 jobs in County Durham could be lost as a result of the shake-up.

Supporters of the Government plans, including most North-East Labour MPs and many regional organisations, say unitary authorities would save money and make council services easier to understand.

Durham County Council says it could save £21m a year.

Opponents, including County Durham's seven district councils, says the changes would take power further away from people and be costly to implement.

Earlier this summer, the districts held an unofficial referendum. On a 40 per cent turnout, 76 per cent rejected the proposals.

Durham's district councils have launched their own legal challenge.

Councillor Fraser Reynolds, the leader of Durham City Council, says the councils will decide whether to press ahead following the outcome of the High Court hearing.

The Government rejected plans for a unitary council for North Yorkshire and approved similar plans for Northumberland.

Darlington Borough Council is not affected by the changes.