Somerset County Council says it will defend it's position after being sued by an outsourcing group in a row over payments.

Southwest One insists it's complied with it's contractual obligations since being set up in 2007 to carry out back office work - but in March 160 staff were brought back to the authority.

The council says it hoped to settle the issue through mediation and negotiation - but faces going to court as Southwest pursues legal action over money it believes it's entitled to.