by John Andrew Local Government Correspondent

The council tax bills landing on doormats in the next few weeks will bring a nasty shock to many householders.

Overall, they are increasing by more than at any time since the tax replaced its ill-fated predecessor, the poll tax, 10 years ago.

The average bill for a Band D home is going up nearly 13 percent, bringing it to just over �1,100.

There are worries that many lower-paid workers - and the elderly - will find the increases hard to pay. Indeed, some pensioners in Devon are already threatening to withdraw the extra. So who is to blame?

Not for the first time, councils and the government are pointing the finger at each other.

Many people are facing huge council tax rises

The government says that, for the first time ever, every council has had an above-inflation increase in central government grant.

But councils say that because of a new formula to distribute the money, many have been left badly short-changed - leaving them a choice of cutting services or raising the shortfall from the council tax payer.

Ministers suspect some councils who are not facing elections this year, are seizing the chance to push through high rises.

ENGLISH COUNCIL TAX RISES North West: 9.1% West Midlands: 9.6% Yorks and Humberside: 10% North East: 8.6% East Midlands: 9.5% Greater London: 17.9% South West: 13.8% Eastern: 15.1% South East (excluding London): 15.8% Figures for Band D households

So who is right?

It is true the government has delivered an inflation-busting increase in grant, but how much each council gets varies widely.

Big-spending councils - those providing education and social services - get anything from 3.5% to 8%.

The grant is supposed to reflect their local needs, but overall it is fair to say that councils in the South and South East have generally got a lower increase than those in the North and Midlands, and this is also reflected in the council tax increases, which are generally higher in the south.

'Turbulence'

At the moment the government is cushioning the effects of this redistribution with a system of "floors and ceilings" to ensure no council loses or gains too much from the change.

Without this the regional differences would be even more pronounced.

It is no secret that councils who are not in an election year can be tempted to sneak through a big rise.

But it is hard to see how this can explain all the high increases.

HAVE YOUR SAY Why do we accept a tax on living? Shauna, Norwich Click here to read more of your comments

What is more likely is that the new grant formula has not quite worked in the way ministers had hoped.

Experts say it has produced a lot of "turbulence" in the system which the government will want to put right next year.

To understand why increases are so high you need to know something about the balance between central and local funding.

Overall, the government provides around 80% of the money councils need, with only 20% coming from the local council tax payer.

That means once you have received your government grant, any shortfall or extra spending must be borne solely by the local tax payer.

This "gearing effect" can mean that to meet a 5% shortfall, the council tax would have to go up by 25%

Not before time, councils say, the government is about to embark on a review of this imbalance of funding.

One solution would be to bring the business rate - set and controlled by the government since 1990 - back to local control.

But that has all sorts of political red lights for the government.

Businesses would be worried about a return to the bad old days when some councils "bled them dry" to fund profligate spending.

For years now, businesses have been guaranteed that increases in their bills are pegged to the level of inflation - something council tax payers wouldn't mind having.