THE unwelcome debate about local government structures brought about by the possibility of regional assemblies has spawned one good thing - a review of the way local government is funded.

It has also been prompted by the above-inflation rises in council tax that have provoked protests throughout the country. In North Yorkshire the debate about the money the council, police and fire authorities will want to take from local pockets has started early because one thing is clear - we will all be paying more by next May.

The problem with this debate is that blame for increases tends to be shuffled back and forth between central and local government.

Central government says it provides enough money for local councils to provide a uniform level of service across the country. How it works out individual grants is a mystery of great proportions even beyond the ken of many council treasurers. But its importance cannot be underestimated because Whitehall grants provide local authorities with up to 75pc of the money they spend.

It doesn't help individual council taxpayers understand if increases proposed by their local councils are justified. Is the Whitehall grant adequate? Is the local council efficient? It is almost impossible to make that judgment.

The solution, proposed this week by the Local Government Association, is to pass tax-raising powers from Whitehall to local authorities so the link between what residents pay in local taxation and the services they receive is more transparent.

This in turn may help to reinvigorate interest in local government elections and do more to devolve real power away from London than the folly of elected regional assemblies.