COUNCILS were last night seething after the Government was advised to tear up the political map of Devon and abolish district councils in favour of one large authority.

The Boundary Committee yesterday recommended replacing the two-tier system with a single council for rural Devon, which they said would be able to deliver more affordable services under clear leadership and "empower" communities.

But yesterday, council leaders reacted with horror at the proposal. It was stalled by several months by a legal challenge against similar plans in Suffolk, which has now failed.

James Morrish, leader of Torridge District Council, said the advice plunged the political structures of Devon into uncertainty at a point when they were battling to set the best budgets for residents amid challenging times. "We now have this hanging over us, and we don't know whether we'll be here at the end of the financial year," he said. "It's like building a house on sand – we have no idea if there's a solid foundation."

Coun Morrish said the process had prompted authorities to work together and become more efficient, and said considerable savings had already been made.

The single proposal once had backing from the Lib-Dem administration at Devon County Council – but when the Conservatives took over in June, the backbone of support disappeared.

James McInnes, leader of West Devon Borough Council, said: "Our council is rising to the challenges of one of the worst recessions on record, helping our residents and businesses get through this terrible period. Yet all they want to do is throw this good work into the melting pot, which will result in the quality of services deteriorating at the very time when they are needed most."

He pointed to Cornwall Council, where original set-up costs have more than trebled to at least £60 million, and services are suffering amid the turmoil.

A spokesman for the Department for Communities and Local Government said: "We recognise the need to move forward as quickly as practicable."

But Sara Randall Johnson, leader of East Devon District Council, hit out at the six-week consultation and said government arrogance "knows no bounds". She said 2007 estimates that the single council would save £28 million – after transitional costs of £74 million are met during year four – are "way out of date" and questioned the logic of spending so much when the Government was "scraping around" for funds.

Devon County Council leader John Hart last night said the committee's recommendations had been noted. "However it is ministers who will make a final decision, and we now await their proposals," he said.

Last night Culture Secretary and Exeter MP Ben Bradshaw said: "It is extraordinary that the Boundary Committee has ignored the overwhelming hostility to a single super-sized Devon council and the strong desire in Exeter to run our own affairs. I hope the Secretary of State will listen to the public and all party support in Exeter and grant our city unitary status."

To make a representation to the Secretary of State by January 19, e-mail DevonStructures@communities.gsi.gov.uk, or write to Unitary Structures Team, Zone 3/J1, Eland House, Bressenden Place, London SW1E5.