MINISTERS last night insisted the campaign for an elected assembly in the North-East had not been dealt a devastating blow by the Government's humiliating decision to shelve referendums in Yorkshire and the North-West.

The North-East alone will vote on November 4 on whether it wants a mini-parliament.

Asked if this U-turn - revealed yesterday by The Northern Echo - was a boost to the No campaign, Local Government Minister Nick Raynsford said: "Quite the opposite. This is a big vote of confidence in the North-East."

At his monthly Press conference, Prime Minister Tony Blair said: "The people in the North-East want the chance to have a say on whether they should have regional government.

"The reason for the difference is because there have been concerns about all-postal ballots in respect of the other two regions."

But Bernard Jenkin, Tory devolved government spokesman, said the Prime Minister wanted to scrap the North-East referendum as well but feared a backlash from local Labour MPs.

He described Mr Raynsford's claim that the Yorkshire ballot had been postponed because of doubts over all-postal voting as "completely unbelievable and entirely cynical".

Mr Raynsford said that as the Electoral Commission was looking into allegations of fraud in Yorkshire and the North-West during June's all-postal European elections, it was too risky to allow those referendums to go ahead.

But the North-East, which was free of allegations, could go ahead.

Mr Jenkin said: "This simply does not add up. If all-postal voting is unsafe for referendums in the North-West and Yorkshire and Humber, how can it be safe for a referendum in the North-East?"

The Government put a brave face on the embarrassment, insisting the Yorkshire poll could go ahead in the New Year if doubts about all-postal voting could be cleared up.

Deputy Prime Minister John Prescott, who has championed the regional concept, told The Northern Echo: "I've always known since I made my first speech in 1980 in the North-East advocating regional government that the region has been to the fore.

"Under these circumstances, it will have the first opportunity to make a decision, with consequences for the rest of the country.

He added: "I want to get into the fight. I am certainly coming back to Yorkshire and Humberside and the North-West."

Professor John Tomaney, chairman of the Yes4The-NorthEast campaign, said: "This does mean that the eyes of the country will be on the North-East, and the people of the region will have the opportunity not just to decide our future, but also set the pattern for the future of regional government."

But John Elliott, chairman of North-East Says No, said: "The Government is making a serious mistake if it believes that it will be any easier to win a referendum in the North-East rather than in Yorkshire or the North-West."

Informed sources told The Northern Echo that the expected Government reshuffle was now unlikely to take place, but rumours about Hartlepool MP Peter Mandelson's future continued.

It is now "extremely likely" that he will be offered a post as Britain's European Commissioner, which would trigger a by-election in Hartlepool that could be held on November 4 - the same day as the referendum.