- guardian.co.uk, Tuesday November 9 2004 02.45 GMT
A defiant John Prescott confirmed yesterday that promised referendums on regional assemblies for Yorkshire and the north-west would be abandoned in the wake of last week's spectacular rebuff by voters in the north-east.
But Labour's "wider programme of devolution" of power would not stop, he insisted, despite Tory taunts that he had been "humiliated" by the 78% to 22% no vote and hints that more sensitive ministers would have resigned after such a personal rebuff.
Downing Street signalled Tony Blair's support for his deputy yesterday, confident he will ward off growing political and media attacks - notably over housing plans for the south-east.
The south-east is Mr Prescott's real challenge now. In a statement to MPs yesterday he acknowledged that voters in the north-east had made plain "they did not want this and of course we abide by their decision". He blamed the electorate's fear of another tier of local government that it would have to pay for - and the prospect of more politicians, even though there would actually have been fewer overall.
With Labour and Liberal Democrat MPs expressing sympathy - joined by a few Conservatives - Caroline Spelman, the shadow local and devolved government affairs secretary, demanded that existing elected councils now get back the powers they had lost to unelected regional bodies, notably over planning, housing, fire and rescue services.
"Will you now say loud and clear that the regional agenda is dead?" she asked.
Mr Prescott said the referendum, which brought a 46% turnout, had cost just £2.6m, in contrast to the sweeping abolition of 18 local authorities in the Thatcher years with no consultation at all.
When the Liberal Democrat spokesman, Ed Davey, complained that the proposed assembly would have had too few powers, Mr Prescott accused the party of "melting away" when the contest became fierce.
Last week's defeat is the least of Mr Prescott's problems as county councils in the south-east prepare to challenge housing growth in their region.
The Tory-led south-east of England regional assembly wants to spend £200,000 circulating 4.5m households, businesses and other stakeholders with a questionnaire next year. In the run-up to the expected May 5 general election, and against the advice of senior planners, people could be presented with a series of options - with the clear impli cations that the government is driving up housing numbers and threatening the countryside.
Counties, from Kent to Surrey and Oxfordshire, were incensed yesterday that they were being presented with a plan from officials to accommodate up to 36,000 homes a year, up from a previous recommendation of 28,000.
"The government is driving this and itmakes no sense," said Oxfordshire's leader, Keith Mitchell, who chairs the planning committee. Mr Prescott's advisers have accused the southern counties of playing politics before an election. They insist they merely reflect the views of voters.

