LANCASHIRE County Council has been accused of using its own newspaper to mislead residents about regional assemblies.

January's edition of the council's Vision newspaper, which is posted to half a million homes in the county, features a three-page article on proposals to change local government.

Critics said the article overstepped the mark and only one sentence highlights arguments for regional assemblies, which could signal the end of the authority.

The Labour-run council has been accused of breaching the government's local authority publicity code by a Labour MP and a Labour district council leader.

A spokesman for the Office of The Deputy Prime Minister said it was looking at the newspaper, which is funded by council tax payers, to see if any further action needed to be taken.

But Lancashire County Council leader Hazel Harding, who represents Rossendale, added: "Each of the options from the Boundary Committee were given equal weight in our newspaper and we will continue to do our civic duty in providing information to people about matters of public interest."

Mr Prescott's spokesman added: "The code states that publicity that comments on government proposals should be objective, balanced, informative, and accurate."

If voters opt for a directly elected regional assembly for the North West during a referendum in October authorities, including Lancashire County Council, are likely to be scrapped.

The newspaper articles spell out Lancashire County Council's opposition to the plans. Coun Harding said: "It is clear there will be considerable costs involved.

"Of course, however, this will only happen if people vote for an elected assembly in the autumn.

"If they do the local government will have to be re-organised, a change that could affect schools, nurseries, roads, housing and every other service that is provided by local government."

Although the county council is opposed to a North West Regional Assembly it has drawn up a proposal for how councils should be reorganised if the voters opt for one -- a Lancashire-wide unitary authority -- which is one of three options being considered by the Boundary Committee.

The newspaper also carried an article in which the county council's finance chief Tony Martin said: "The one-off costs of change include the cost of planning reorganisation, new premises where applicable, recruitment, redundancies, training, changes to computer systems, the extra cost of new elections and the cost of relocating staff.

"The message is clear -- no change would avoid the need to incur these costs."

Burnley MP Peter Pike said: "I know that people have expressed concerns that the County Council is giving its own view in a bid for self preservation."

And Chorley Borough Council's leader, Jack Wilson, said: "Councils are prohibited from campaigning for or against regional assemblies.

"Chorley Borough Council has sent a copy to a government auditor to ensure that the money used to produce the paper was spent properly."