The polls have closed in the referendum on whether the region should have a regional assembly.

Voters in the North-East had two weeks to return their ballot packs in the all-postal vote.

People who did not post them in time were able to hand them in at town halls before 10pm today. The result is expected at about midnight.

If voters say "yes", plans to set up the new tier of government will be debated by MPs. But a "no" vote could mean the end of the whole project.

Deputy Prime Minister John Prescott, who has been the driving force behind the plans, said: "I will be disappointed if people vote no and I realise that it will be close.

"What I am not disappointed about is giving the chance to the people and I hope they will say yes."

Ministers argue the assembly would give a voice to regions distant from Westminster and return power to local people from the non-elected bodies that oversee many services.

If approved the assembly take strategic decisions in economic development, transport, planning, housing and culture and tourism.

If voters say "yes" to the government's assembly plans, a final version of the regional assemblies Bill will be laid before MPs.

If voters say "no" to the plans, the result will be a blow to the government's plans to set up this new tier of government.