WEST Somerset Council's potential new ally in the fight to secure its long-term future is likely to be on the edge of its own "fiscal cliff" within four years if it does not face up to its problems.

Taunton Deane Borough Council has been identified as West Somerset's preferred partner for a possible joint management and shared services deal.

And the formal process of putting the arrangement before Taunton Deane councillors will begin next week when the authority's corporate scrutiny committee will be asked if it will support a move to explore the possibilities through working up a robust business case.

But a report by chief executive Penny James and strategic director Shirlene Adam makes clear that although West Somerset's long-term viability has been called into question in a Local Government Association report published late last year, Taunton Deane could be in a similar situation within three to four years if it does nothing.

The authority could be on the edge of its own financial black hole.

"Front-line/core services must be reviewed to ensure they are affordable going forward," said the report. "Status quo is not an option.

"The medium term financial plan shows a starting gap of £1.2 million in 2014/15 rising to £2.4m in 2015/16."

The report describes Taunton Deane as an ambitious council which knows what it wants to achieve around the growth of the county town and the surrounding area - investment in infrastructure, jobs and housing and investment and maintenance of high quality environmental, cultural and leisure.

But that ambition will mean funding is not available to support ongoing front-line services.

Councillors will be told that between 30 and 40 councils in the country now share joint management.

And if Taunton Deane minimises its management costs and maximises its service efficiencies through sharing, it will be able to protect its services and invest in its strategic ambitions.

The report points out that although West Somerset and Taunton Deane are the driving authorities, the proposed business case is supported by a wider alliance of Somerset County Council, Sedgemoor District Council and the Exmoor National Park Authority.

Councillors will be told the benefits to working with West Somerset are that it is a willing partner and that its community looks broadly to Taunton Deane.

If West Somerset was ultimately declared unviable in the future, Taunton Deane would be strategically placed to capitalise on any advantages from a boundary review.

And, the report said, Taunton Deane would also become better aligned to the strategic and economic benefits arising from the proposed Hinkley C nuclear power development.

The potential deal would see both councils keeping their own priorities, policies and service standards, which they would each have to be able to afford.

West Somerset's financial circumstances would not be a risk for Taunton Deane.

"No 'dowry' or ongoing financial support from Taunton Deane is expected," said the report.

"Taunton Deane will not be subsidising West Somerset's contribution to any joint management or shared services at any time."

The proposed business case would explore the likelihood of achieving a sustainable future for both democratically independent councils, along with a single, fully

merged affordable officer structure and efficient, effective and affordable services with reduced costs, increased income ad improved resilience.

Members have a clear choice, said the report - they either back the proposal to look at joint management and shared services with West Somerset and the wider alliance of councils or reject it and start reducing Taunton Deane's management costs and streamlining services.

"Doing nothing is not an option or we will meet our own 'fiscal cliff' in three to four years' time."

If the business case bid wins support - a final decision will be taken by Taunton Deane's full council on March 4 and West Somerset's on February 27 - a detailed proposal would be available by October, with joint management taking effect from April 2014 and shared services a year later.

Although negotiations are currently underway to secure funding from central government and the LGA to help cover the costs, Taunton Deane councillors will be asked to earmark £87,000 to the project.