Councils in Sussex are studying the implications of a planned shake-up in their services.

Local Government Secretary Stephen Byers has produced a White Paper called Strong Local Leadership - Quality Public Services, which sets out a raft of changes.

The Tory stronghold at County Hall in Chichester, which has often found itself at loggerheads with the Government, has given a "cautious welcome" to a major overhaul of local government.

Instead of doing away with a tier of local government, Mr Byers is proposing to give authorities more freedom to set their own budgets and tax levels.

Councils will be able to sell services to other local authorities or the private sector and charge residents for services they do not have a legal duty to provide.

Mr Byers has also promised to sweep away unnecessary bureaucracy with councils being able to take more decisions without having to consult Whitehall.

One key area will be borrowing, with councils no longer needing to go cap in hand to the Government over credit limits and for decisions on getting outside finance for capital projects.

Mr Byers has also promised voters will know exactly how well their councils are performing so they can be judged at the ballot box with local government joining the league table list alongside schools and hospitals.

There will be categories designed to show residents which councils are performing well, striving, coasting along or performing poorly.

Bosses from councils could be called in to take over services or provide management support for some poor performers and the Government could take some councils into administration or transfer services to the private sector.

But it is the promise of greater freedom that has won Mr Byers the most praise from Sussex.

Ken Bodfish, leader of Brighton and Hove City Council, said: "It signals an important change of direction in that local government is not always going to be totally subservient to central Government."

Coun Bodfish has yet to study the full details but said the flexibility being offered to town halls was welcome.

League tables were something he was also convinced Brighton and Hove would take in its stride.

He said: "There is always a degree of nervousness about where one might be placed but whether we come first or further down, we will do our utmost to improve."

East Sussex County Council has yet to deliver its verdict on the package.

West Sussex county councillor Dr James Walsh said: "I think this paper is too timid and Stephen Byers has missed an opportunity to go further."

"Where most of the big money is concerned, such as spending on education and social services, Whitehall will still be calling most of the shots.

"I am disappointed there is nothing in the White Paper about fairer voting. Proportional voting at local elections is a missed opportunity."

Coun Walsh said more freedom for local decision making was welcome but he was worried about the criteria that will be used when the league tables are published.