The leader of West Somerset DC has called for his council to merge with Taunton Deane BC to secure the financial future of the authorities.
Anthony Trollope-Bellew said the budget gap which is predicted to reach £1.2m by 2021 could not be ignored.
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.
Local government minister Marcus Jones has already refused a request for ‘additional resources' from Whitehall and suggested the council instead explored a merger.
The two councils have shared a single officer team since 2013, which has delivered £1.8m savings annually.
Cllr Trollope-Bellew said in a report: ‘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.
‘As leader, I recognise this is very difficult – the most difficult decision I have had to take during my many years in local government.
‘I am confident by proactively delivering this innovative solution for our existing area that we can create a new council that fully represents the interest of the new combined communities.'
West Somerset's full council will meet next month to make a decision.