Caerphilly County Borough Council has rejected Welsh Government plans to merge with Torfaen and Blaenau Gwent as part of local government re-organisation proposals.
The ruling Labour group and Cabinet called for a stand alone solution, and were supported by Plaid Cymru councillors at a vote on September 29.
The Welsh Government is looking to cut the number of councils in Wales and is awaiting responses to the Williams Commission report, which outlined merger plans.
Minister for Public Services, Leighton Andrews, said the Welsh Government could not continue to subsidise local authorities at the level it has been due to Westminster cuts.
He said: “We cannot continue to operate with 22 local authorities. There will be change, voluntary or not, and I am offering a unique opportunity to those who are willing.
“I want local authorities themselves to make fundamental and lasting change to create modern and effective Local Government in Wales.
“I hope they seize this opportunity since those who agree to merge voluntarily will determine their own future and will not face elections until May 2018.
“Local authorities who wish to end uncertainty for their staff and the wider public should urgently consider how best they can come together with neighbouring authorities to deliver services on a more strategic basis.”
Caerphilly Council’s decision to stand alone will almost certainly put them at odds with the Welsh Government.
A Labour group spokesman said: “The Labour group of Caerphilly councillors was delighted that, last Monday, Caerphilly Council unanimously, including Nationalists and Independent councillors, backed Labour’s recommendation to reject the proposed merger of our council with Blaenau Gwent and Torfaen.
“Council noted the lack of any business case supporting the proposal; and the many differences between our council and the others, in council tax rates, housing stock, leisure services management etc. Such a merger would not be in the interests of Caerphilly County Borough residents.”
Cllr Colin Mann, leader of the council’s Plaid Cymru group, said: “There was a unanimous vote against a merger. There would be far more disadvantages than advantages to go trough another merger process with no financial gain.
“The last re-organisation in 1996 caused massive disruption and costs. The terms and conditions of council employees in Caerphilly were not finally equalised until nearly 15 years later.
“Caerphilly has got a good record of delivering services to residents, so why change something which is not broken?”
The battle will now commence and the Welsh Assembly will eventually force the changes they want. This is unfortunate as, although fewer councils would be a good thing, the proposed mergers will not be in the public interest.
I repeat my proposal that councils should be based on the 8 preserved counties of Wales. This may not be a perfect set up but I am convinced it would be better than the peculiar and flawed plan the Assembly is determined to implement.