A £168,000 funding pot looks set to be made available to help West Somerset ride out the recession and kick-start new investment into the district.

As well as promoting existing rate relief schemes, a new economic community initiatives fund could be set up, lump sums given to rural shops and cash spent on sprucing up Minehead to boost tourist numbers.

The package of measures is due to be considered by members of West Somerset Council's cabinet next Tuesday and, if approved, could lead to many more thousands of pounds flooding into the district.

The authority has already made a bid for £19,000 from a one-off economic hardship fund, which, if successful, will be match-funded by the council together with £6,000 from local communities and the private sector.

The aim is to plough £41,000 into improving signs in Dulverton and tidying up the "street scene" in Minehead, including offering vacant shops as potential exhibition space for local producers and community organisations.

A £50,000 Economic Community Initiatives Fund could also be set up to allow the council to make "discretionary investments" of up to £10,000 apiece in local organisations.

A further £2,000 could be set aside to give grants of up to £300 to rural shops which are the sole village outlet or have lost their Post Office provision.

In addition, an estimated 100 small businesses which have yet to claim the 50 per cent discount on their business rates they are entitled to will be encouraged to apply for rate relief.

An existing hardship business rate relief scheme could also be amended for this year, allowing firms to claim against their current business rate liability, rather than having to wait a year and apply retrospectively.

All the council's proposals would be covered by Government Working Neighbourhoods Funding money, which was given to the authority, specifically to create jobs and boost the economy.

Corrine Matthews, the council's economic regeneration officer, said several other initiatives and partnerships were already being pursued to combat the economic crisis.

These included the authority paying all its invoices within ten days, the formation of a West Somerset Business Forum to provide support, a new tourism partnership and closer working on regeneration projects in places such as Watchet and Williton.

She said the authority's bid for funding from the South West Regional Improvement and Efficiency Partnership would help both Dulverton and Minehead make the most of what was forecast to be a busy tourist season.

If approved, the Economic Community Initiatives Fund would also potentially attract "considerable more funding for local projects".

In a report to the committee she said: "Small amount of pump priming monies can make a big difference to community-led action and also serves to lever in additional funds.

"It is, therefore, recommended that a sum of £50,000 for 2009/10 from the Working Neighbourhoods Funding is ring-fenced as a discretionary investment fund to allow the council to be reactive in helping communities and local organisations realise their economic aspirations.

"This will also undoubtedly assist in partnership working and will help the council to be both proactive and reactive to supporting projects and actions that will make an economic difference."

She will also ask the cabinet to consider allocating money for an overall contingency fund to enable the authority to "respond promptly to other opportunities".