Calls for a local authority to pull its funding from the North-East Assembly have been overwhelmingly rejected by councillors.

Members of Durham County Council today rejected a motion proposed by two Independent councillors calling on the authority to withdraw the £84,800 it pays to support the work of the North East Assembly and Association of North East Councils.

The 72-member Assembly, made up of representatives of the region's councils as well as people from the business and voluntary sector, was set up by the Government in 1999.

As well as money from Whitehall, it receives £850,000 in population-based subscriptions from the North-East's 25 councils towards running costs, including costs of the body's 31 staff. Durham County Council is the third largest contributor, behind Sunderland and Newcastle.

However, in the wake of the overwhelming No vote in November's referendum on plans to create an elected replacement, a campaign has been launched, led by Neil Herron of the North East No group, calling for the abolition of the existing Assembly.

Earlier this week, Conservative-controlled Cheshire County Council began moves to withdraw funding from the North West Assembly and today Weardale councillor John Shuttleworth, who has already written to Deputy Prime Minister John Prescott calling for the assembly's abolition, attempted to persuade Durham County Council to follow suit.

Mr Shuttleworth, who described the assembly as an unelected quango, said: "We are subscribing to an organisation which is working against the democratic wishes of the council. These people do not have a mandate from the people to decide our future."

However, the motion was heavily defeated by Labour and the Liberal Democrats, with only the two councillors who proposed the motion voting in favour.

Instead, the meeting backed an amendment proposed by council leader Ken Manton, welcoming recent moves to clarify the respective roles of the association and assembly.

He said that in the referendum the public had been concerned about the costs of an extra layer of government, but added: "The North East Assembly is not an extra layer of bureaucracy, it is the only regional body which brings together the public, private and voluntary sectors to provide an effective forum and voice for the North."

Liberal Democrat leader Cllr Nigel Martin said: "The North-East is not getting its fair share as far as things like the Barnett Formula are concerned.

"It is only by binding together that we will get a fairer deal."