The high-profile spat over residents' permits has taken another twist with Oxford City Council likely to shut its parking and payments shop.

The decision is more than a cost-saving exercise - it is another clear signal from the Town Hall it will not have anything to do with the administration of Oxfordshire County Council's controversial charging policy.

County Hall hoped the city would take on the role of overseeing the distribution of residents' parking permits from the shop in the High Street.

It is currently used as a place where city residents can pay bills and fines.

But last night Fri, Sept 29city councillor Stephen Tall, executive member for better finances, said the council "would not do the Tories' dirty work".

His comments come as a courtroom showdown over permit charging between the two authorities looms large, with neither willing to budge on the issue.

Mr Tall said: "The Liberal Democrat city council has clearly stated it will refuse to administer the Tory county council's policy of charging Oxford residents for their parking permits against the wishes of the vast majority of the public.

"The city council has quite happily administered the scheme for many years now, but we will not do the Tories' dirty work for them.

"Permit charges are their policy, they will have to implement them.

"I want no-one to be in any doubt this council will not have anything to do with such an unfair and unjust policy."

Closing the parking and payments shop and letting it will save the council an estimated £100,000 a year and generate rental income.

The facility is underused - just 16 per cent of all payments to the authority are made there - and so the Town Hall wants to collect money by standing order, direct debit or via the Post Office.

Closing the shop has unanimous support from the city council's finance scrutiny committee and its recommendation will be considered at a later date by the decision-making executive.

Richard Dix, the county council's assistant head of transport, said: "It had already been indicated to the city council that Oxfordshire County Council was willing to discuss and agree the transfer of some staff in the event they decide to close their payments shop.

"The city council has been considering the closure of the payments shop for some time for reasons to do with their own services."