FALTERING Government plans to abolish Devon's county and district councils have cost the county £8-10 million, business leaders have estimated.

The elections watchdog is investigating whether to replace nine current authorities with either a single unitary council or two – one covering the rural part of the county while Exeter and Exmouth go it alone.

The proposed political shake-up has been rumbling on for more than two years and now looks doomed after last week's successful legal challenge over similar plans for Suffolk.

Devon and Cornwall Business Council chairman Tim Jones said "cash and in kind" costs associated with the reorganisation had been put at £8-10 million.

"It is a disgraceful waste of money," he said. "We need every pound we have got to fight through the current climate."

Mr Jones said the "bureaucratic muddle" was "a massive distraction at the wrong time" and argued that senior council executives should have been freed up to concentrate on economic recovery.

"Whitehall seem to decree these things without any regard to the consequences," he went on. "Are they going to pay back all of these expenses? At best, the business community is unimpressed, at worst they say a lot of things ruder than that."

Three district councils in Suffolk last week won their court battle over claims the Boundary Committee failed to consult them over "reservations" about a move to a unitary council which has thrown the committee's plans into disarray.

It had been due to present its final proposals for the future of local government in Devon to Communities Secretary John Denham today.

However, the Department for Communities and Local Government yesterday extended the deadline for the Boundary Committee to provide advice on the proposals for Devon, Norfolk and Suffolk.

"We have today received a request from the Boundary Committee to extend the deadline for their advice which we have granted," said a spokesman. "Once it is clear when any appeal may be determined, a new deadline for the Boundary Committee's advice will be specified.

"We are still clear that if appropriate unitary structures are identified for Devon, Norfolk and Suffolk that have the potential to offer real benefits for the residents of these areas by delivering better services, improved efficiency, stronger strategic leadership and genuine engagement and empowerment of local communities, it would be wrong to deny the people of these three areas those benefits."

The committee said it welcomed the decision "to consider an appropriate date for provision of final advice".

The latest delay could be a fatal blow to Labour's plans to get the reorganisation on the statute book before the next General Election.

If the Government finally admits defeat and ditches the plans, the taxpayer will have to foot the costs which already runs into millions of pounds.

Earlier this month, the Conservatives, which now run Devon County Council, promised to scrap the "reshuffling of town hall deckchairs".