THE £5 extra likely to slapped on average council tax bills by Taunton Deane Borough Council next year will subsidise another authority, it is claimed.

Cllr John Williams, Conservative leader at the Deane House, which runs waste collection, environmental health and planning, wants to increase bills by 3.3 per cent, taking Band D property demands to £154.62 in the year from April.

The Deane's share represents a tenth of overall bills, with the bulk going to Somerset County Council, which is responsible for education, social services and highways, and other contributions for police and fire services and town and parish councils.

It follows Somerset County Council annoucing a proposed increase in its share of the tax of 5.99%, representing an increase of almost £70 a year for a Band D property.

Mr Williams said Taunton Deane Borough Council three years ago allocated £16.6 million over five years for "growth and development ambitions", with cash earmarked for flood alleviation, transport schemes, Taunton town centre regeneration, employment sites, enterprise and innovation.

But he said the Deane faces funding cuts totalling almost £850,000.

"Thanks to prudent housekeeping in the past, we're still able to commit to our pledge to invest in our economy despite seeing such significant decreases in funding," said Cllr Williams, who believes the increase will bring in an extra £207,000.

"We'll be able to set a balanced budget in the coming year despite the challenges we face, without the need to cut services.

"We've delivered substantial savings through our partnership with West Somerset Council - £1.8 million annually – and we'll be able to increase this by a further £3.1 million a year through changing the way we work and, if approved, creating a new, single council."

Council house tenants will see a one per cent fall in rent, while £8.973 million will go on major works on some existing homes and a fund will cover new development and/or the redevelopment of housing.

LibDem opposition leader Cllr Simon Coles said the maximum possible tax increase comes as the Conservatives "plunder the reserves" for £459,000 after failing to meet target savings of joint working with West Somerset Council.

Mr Coles said: "This money will have to be paid back.

"This means setting a deficit budget which fails to balance the books and just stores up more and more problems for future years.

"Since West Somerset is doing exactly the same thing, all this makes the prospect of a merger look more like a political suicide pact than a recipe for success. The local taxpayers of Taunton Deane will be picking up the tab.

"To make things worse, the council is spending £10 million on refurbishing Deane House, while senior officers are forced to spend time driving to Williton to sort out West Somerset instead of focusing on the needs of Taunton Deane.

"With the rise of almost six per cent in the council tax set by Somerset County Council, the two Conservative councils will be increasing your bills by well over 5 per cent, twice the rate of inflation."