West Somerset council is so financially stretched that its very future is in doubt, according to a confidential report seen by this programme.
The council, one of the smallest in the country, will have to make savings over the next two years, but after that faces a merger with other authorities, it says.
The report, by the Local Government Association, says the sparsely-populated area is facing a growing budget deficit which means that it will not be able to provide even minimum standards of service in the future. Various options are proposed, including sharing services with other councils.
West Somerset say tey'll consider the report next month.