Nottinghamshire CC has dropped its reorganisation plans, which the leadership had hoped would save the authority millions of pounds each year.
Councillors yesterday decided against holding a formal consultation on plans to replace the county's two-tier system with a unitary authority.
It was hoped the plan would deliver £27m of annual savings through a reduction in senior management positions, support services and councillors.
However, county council leader Kay Cutts said she now accepted that her view of the benefits was 'not universally supported'.
She said: ‘After meeting with district council leaders and chief executives, and after much reflection, I have decided to withdraw the outline business case from Thursday's county council meeting.
‘There is no simple solution to the significant financial challenges we face and savings will still have to be made to close the funding gap.
‘We will need to consider radical solutions and not just look at back office functions.'
