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The Council leaders both agreed that government funding for their local services was inadequate and aim to make a joint approach to ministers to plead for more money for both towns.

Despite both councils remaining adamant that they should retain their individual identities and that there is no agenda to create 'Wessex City', the leaders want to begin to establish a joint plan where their co-operation on certain services will create a better and more cost effective way of giving their residents what they deserve.

Councillor Leverett, Leader of Poole Council, said: "This was an historic meeting. For the first time, since both towns took over responsibility for education, social services and highways after becoming unitary authorities in 1997, we have met to try and work jointly on our problems and it demonstrates how committed we both are to working towards increasing co-operation. There are already a lot of good examples of partnership in areas such as social services and it is our intention to build on these."

Councillor John Millward, Bournemouth Borough Council Leader, said: "I am delighted that we are taking such positive steps to work closer with our neighbours. We focused on ways in which the councils could co-ordinate the provision and achievement of better and more efficient services, looking at areas such as waste management and better jobs for people throughout the conurbation."

Both Poole and Bournemouth have set down the task of undertaking feasibility studies across their services with the intention to meet again in January to discuss the way forward.

John McBride, Chief Executive, Borough of Poole, said: "This is a very positive move forward and is based on our commitment to provide our residents with the highest quality and quantity of services that we can."

Bournemouth Chief Executive, Paul Godier, commented: "In these cash strapped times it is essential that we work even more closely together. For the benefit of the people of the whole conurbation, we aim to unlock efficiency savings from sharing expertise and purchasing muscle and gaining better results on common issues like transport and economic development."