CAMPAIGNERS from North-East Says No declared the fight against the proposed regional assembly to be under way yesterday - but immediately found themselves under fire over their links with the Conservative Party.

The Durham-based campaign group, set up in July by John Elliott, chairman of water cooler business Ebac, was yesterday selected by the Electoral Commission as the designated No campaigner for November's referendum.

The decision brings with it £100,000 of Government funds to use in the campaign and the right to spend up to £665,000, if the money can be raised from other sources.

At a Press conference in Newcastle's Copthorne Hotel yesterday, spokesman Graham Robb spoke of his delight at winning designated status and his determination to highlight the cost of the assembly and its lack of powers, which he said would make it "a talking shop for professional politicians".

Businessman Sir Tom Cowie, who is a leading supporter of the campaign, said: "We will be making it clear to the people that a regional assembly will be all cost and no benefit - it means higher council tax, but no powers to improve health, education or law and order."

North-East Says No, which has the backing of several significant figures in the North-East's business community as well as the Conservative Party and UK Independence Party (UKIP), also revealed a list of supporters who had joined the campaign.

However, Neil Herron - the leading figure in the North- East No campaign, which lost the fight to be designated as the official opposition to the assembly - said that he would not be joining the campaign, despite an invitation from the victorious camp, sayingNorth-East Says No is too closely associated with the Tories.

He said: "I am disappointed for the people of the North-East, but from our point of view nothing changes, we are going to continue with the campaign.

"Our campaign has always been free of party politics and we will not be joining a party political campaign."

His views were echoed by Ashok Kumar, Labour MP for Middlesbrough south and east Cleveland, who highlighted several key figures in the campaign as donors to the Conservative Party, including Mr Elliott and Sir Tom.

Mr Kumar said: "Almost 20 per cent of North-East Says No backers are either Tory politicians or Tory donors. It is clear that the links between North-East Says No and the Conservatives run very deep."

Mr Robb, a former Tory candidate and regional spokesman for the Conservative Party, is thought to have taken a more prominent role in North-East Says No to improve its presentation skills ahead of the referendum.

While he said he was delighted with the support of the Conservatives and UKIP, he added that the campaign was attracting widespread support.

"Our organisation is a broad church," he said. "I know there are Lib Dem and Labour politicians who are not in favour of the assembly, but persuading them to say so in public is very difficult."