A BALLOT on setting up a mini-Parliament in the North-East will take place before the next General Election, Deputy Prime Minister John Prescott has said.

Mr Prescott will finish taking soundings this week in the regions about the interest in setting up assemblies.

In regions he feels there is support, he will allow a referendum on the issue.

It is expected he will give approval to the North-East, where there is more likelihood of a positive vote.

Mr Prescott told an audience in York: "Some regions will not want a referendum and we will respect that. But I believe that there is a hunger for English regional government in several parts of the country.

"It is my firm hope and intention that the first referendum will take place before the next General Election."

The legislation necessary to hold a referendum is in the House of Lords.

Mr Prescott unveiled his plans for English devolution last year with regional assemblies having powers in job creation, transport, housing, tourism and culture.

But business leaders have attacked the proposals, claiming they will generate bureaucracy. The Confederation of British Industry branded the assemblies talking shops.

Mr Prescott said yesterday they would make a difference.

"By taking a tailor-made approach that reflects regional needs, we can target resources more effectively, fostering local talent and benefiting local communities and economies," he said.

"We want businesses not benefit offices."

A poll conducted by Durham County Council found a majority of people wanted a referendum on regional government, though many were undecided on an elected assembly.