TAXPAYERS are likely to pay a heavy price for the creation of a North West Regional Assembly.

For a yes vote in October next year will also lead to sweeping changes in local government.

On Monday the Boundary Committee for England gave the public three options in the event of a yes vote - one unitary authority (Cheshire); two unitary authorities (east and west Cheshire) and three unitary authorities (Macclesfield and Congleton; Vale Royal and Crewe and Nantwich and Chester City and Ellesmere Port and Neston). Cheshire and Macclesfield Borough Council currently govern Knutsford.

Macclesfield collects the council tax; Cheshire spends 90% of it.

But a regional assembly in Wigan will mean the end of one tier of local government - either in Macclesfield or Cheshire.

Cheshire wants to scrap Macclesfield and be solely responsible for the county. It claims council tax bills will rise by about £173 a year if Cheshire is split into three unitary authorities - and £100 if the county is calved in half. "The potential difference between a single council and three unitary councils is an additional running cost of between £29 million and £44 million each year," said a spokesman for Cheshire County Council.

Cheshire argues that a single Chester-based unitary authority, which would cost up to £31 million to set up, would save taxpayers up to £23 million a year.

"The cost of the change could be paid off in less than two years and would not permanently add to the council tax burden," said the spokesman. If residents support that option, the authority will assume control of bin collections, council housing and planning - all services currently managed by Macclesfield.

Unsurprisingly Macclesfield supports the creation of three unitary authorities within Cheshire - and the abolition of Cheshire County Council.

If residents reject regional government, both authorities will continue to govern Knutsford.

The Boundary Committee's final recommendations are due to be published in May - five months before people in the North West will be asked to vote on the possible creation of an elected regional assembly.

On Friday Knutsford pensioner Michael Johnson, who refused to pay his council tax bill after it was increased earlier this year, said he supported the option of a unitary authority - provided costs were kept low.

"There is a clear quid pro quo here - show openly that council tax is being controlled properly and in return I will vote for one unitary council," he said.