WEST Somerset MP Ian Liddell-Grainger today launched an astonishing attack on a new company set up to make multi-million pound savings in public services.

Mr Liddell-Grainger used a House of Commons speech to savage the "corruption" of Southwest One - a joint venture company set up by Somerset County Council, Taunton Deane Council and IBM, and this week joined by Avon and Somerset Police.

The councils and the police say Southwest One will deliver services on their behalf such as IT, finance, human resources and customer contact centres at great savings - click here for more details.

But Mr Liddell-Grainger said the details of how Southwest One will work have been kept secret. He also said the organisation could not hope to deliver the £200million savings it promised.

He told MPs: "I believe that public money is being misappropriated and I fear - I do not mince my words - corruption.

"Southwest One is an outfit born in secrecy and reliant on secrecy. Trade unionists who ask responsible questions are branded traitors. Joe Stalin would have been proud of the company.

"Southwest One is destined to gobble up more than £400million of public money providing just two councils with services over the next 10 years.

"Last night, I was bombarded with documents from Somerset County Council hoping to convince me of the savings. I read them all.

"They all mentioned the magic word "guarantee", but it is all aspiration - it is not an explanation of what is going on.

"Somerset people are being asked to believe in fairies, and we do not. Painless savings cannot be made unless there are real economies of scale, and they certainly cannot be guaranteed."

Somerset County Council has responded to MP Ian Liddell-Grainger's House of Commons speech by saying it is proud to be part of Southwest One.

Sam Crabb, county councillor for resources, said the company would make savings that would be ploughed back into front-line services.

He said: "The Somerset and Avon areas will get better services and staff will gain through assured employment and by working with colleagues from the world-class IT and business management providers, IBM."

In a joint statement, Jill Shortland, leader of Somerset County Council and Ross Henley, leader of Taunton Deane Council, said: "Southwest One has been set up with the express purpose of transforming and improving the delivery of services, making them more accessible and driving down costs.

"It's through collaborative working like this that we can deliver excellent customer-focused services, cost-effectively."