FUTURE funding quarrels between Swindon Council and Whitehall could be settled with the help of an independent body, a top Government adviser has said.

Sir Michael Lyons said yesterday local authorities must receive adequate funding from Central Government coffers.

Councils which believe they have been short-changed could be allowed to call for an evaluation of their grant, with an independent body established to reduce disagreements, Sir Michael said.

Swindon Council has argued for years that it gets a bad deal from Central Government.

In 2005, Swindon complained it received a 5.6 per cent increase in its formula grant from the Government, compared to the national average of 6.2 per cent.

The Government works out council funding according to a formula based on various factors, including a town's prosperity.

Swindon argues it fares badly under this formula.

The review also suggests changes that would give Swindon Council more power to levy and spend business rates as well as including more backbench councillors in decision-making.

The council's cabinet member for resources, Nick Martin, said he would welcome any of the suggested changes.

"We like the independent adjudicator," Coun Martin (Con, Shaw and Nine Elms) said. "We reckon every year that we lose millions of pounds."

He said the council was also being short-changed on business taxes.

"If we get two-thirds of the industrial rates back we figure we are doing well," Coun Martin said.

"That would be wonderful so long as the Government don't take this money somewhere else."

His report also leaves the door open for Swindon Council to be given greater control over spending business rates, which would allow it to reap the benefits of soaring economic growth and house building booms.

Business rates are currently set by the Government, collected by councils and then sent to a national pot.

The councils get money back as part of their annual settlement.

Sir Michael said it would also mean the council would become the voice of a whole community a concept he describes as "place-shaping."

Sir Michael's report also calls for the job description of councillors to be beefed up.

Backbench councillors should be given a greater role in scrutinising proposals from the council and other public bodies, he said.

Coun Martin said backbenchers were already well employed on Swindon Council scrutiny and audit committees.

Sir Michael is due to publish his final report including recommendations for shaking up the council tax in December.