THE Tories last night backtracked on whether elected regional assemblies would have a future under a Conservative government.

Despite official condemnation of the Government's devolution plans as "a nightmare", it emerged last night that the Tories were working out an escape clause if the people of the North-East voted in favour of an assembly in the run-up to a General Election in which the Tories were committed to scrapping the plan.

A senior member of the shadow front bench suggested that a second referendum would be offered in areas where regional assemblies were already running. The second vote would give people in the North-East a chance to scrap the assembly should they have a change of heart.

The source confirmed yesterday's story in The Northern Echo that Regional Development Agencies (RDAs) such as One NorthEast and Yorkshire Forward are also to be reprieved by the Tories.

Under proposals still being worked out, the RDAs, which are scrutinised by the assemblies, are likely to come under the control of "existing democratic structures" such as local councils.

Nevertheless, on the conference floor, David Davis, who shadows Deputy Prime Minister John Prescott, was uncompromising in his opposition to elected regional assemblies, and would fight them "every step of the way".

Although he did not pledge to abolish them, he claimed that setting up devolved assemblies in areas such as the North-East would cost the taxpayer an extra £200m a year.

He told the conference in Bournemouth: "That means £200m of extra bureaucracy, £200m of extra paperwork, £200m of extra talk."

It would be good for creating £35,000-a-year jobs for Mr Prescott's friends, he said, to do a job "already done much better by our Tory county councillors".

Businesses wanted less government, less red tape and lower taxes, he said.

"The last thing they want is more government, more cost, more regulation - but that's exactly what they'll get from the regional assemblies."

But Conservative Welsh Assembly member David Melding said the party "should not casually dismiss English regional devolution".

He said: "As in Wales and Scotland, the party must learn to love devolution."

At a fringe meeting yesterday, Archie Norman, former Tory vice-chairman and shadow environment spokesman, said: "It is a tragedy that our northern cities like Newcastle have become virtually Conservative-free territory. It cannot be allowed to continue.