The leader of West Somerset District Council has called for his council to merge with Taunton Deane Borough Council to secure the financial future of the authorities.
The merger, which was agreed by Taunton Deane last month, would cost £6.8m but produce savings of at least £3.1m a year.
West Somerset DC has previously been warned it is not viable unless ‘special measures’ are implemented.
However, leader of the council Anthony Trollope-Bellew said the budget gap which is predicted to reach £1.2m by 2021 could not be ignored.
In a report, cllr Trollope-Bellew said: ‘Recognising the financial position in which we find ourselves (through no fault of our own) I think it is imperative, and in the best interests of our community, that we take a positive decision to create a new council.'