WEST Somerset councillors welcomed Taunton Deane's decision and said they remained confident the Government would pick up the tab for the business plan.

But to smooth the way, cabinet members agreed to set aside £25,000 to cover all upfront costs that could be incurred by Taunton Deane when they met on Wednesday.

Council leader Cllr Tim Taylor said the money would come from a pot set aside to pay for the part-time services of a finance expert on loan from Somerset County Council.

He said the county council had agreed to extend Sharon Campbell's contract at the district authority for an extra 12 months free of charge.

"That means will will be able to use the money we had set aside to underwrite any potential costs," Cllr Taylor said.

He said he was "delighted" both councils had formally agreed to work together on the possibility of sharing services and managers.

"The hard work can now start as we draft a business case for closer working.

"I know that my fellow members and officers at West Somerset see this as a great opportunity to develop a sustainable template for providing affordable local government services that will be of mutual benefit to the communities of both areas," Cllr Taylor said.

Deputy council leader Cllr Chris Morgan said it was important Taunton Deane councillors were aware West Somerset was more than prepared to cover its costs.

"I wouldn't want anyone to think we were sponging in West Somerset.

"We want to pay our way and I think this is a great opportunity," Cllr Morgan said.

Speaking after Monday's meeting, Taunton Deane Borough Council leader Cllr John Williams said both authorities would apply for Government funding to cover the cost of investigating the partnership.

He added: "Taunton Deane has a very good record of working in partnership with other organisations and this decision now enables us to explore the business case for working more closely with our neighbours in West Somerset and other authorities.

"The hard work begins now but it is a challenge we must rise to as we have ever increasing demands for services and a reducing income.

"We have to examine shared management or services and clearly establish what it can deliver in savings or resilience of resources."

The project will be overseen by a joint members' advisory panel made up of four councillors and a joint programme board which will include the chief executive of Taunton Deane Penny James, the chief executive of West Somerset Adrian Dyer and three senior officers from each authority.