JOHN Prescott yesterday sought to quash rumours that the Government is preparing to shelve referendums on setting up elected assemblies in the North-East and Yorkshire.

The Deputy Prime Minister insisted the polls would take place even if the Electoral Commission forces a delay by ruling that all-postal voting is unsafe because of the risk of fraud.

But his Commons statement failed to silence growing speculation that the referendums - pencilled in for October or November - may not be held before the General Election, expected in May or June

The Government has ruled out a referendum in the winter because campaigning would be too difficult, making it likely that any delay would push back polling until next year.

It is almost inconceivable that a referendum could be held only a month or two before the General Election and it cannot be held on the same day.

Were the Conservatives - who oppose elected assemblies - to pull off a General Election victory, the devolution dream would be killed off for good.

It has been suggested that the Government has been attempting to get out of its commitment to holding referendums in the face of private polling showing it could lose badly in Yorkshire.

The speculation was sparked by a surprise statement by Constitution Minister Chris Leslie of a delay if the Electoral Commission forced the ditching of all-postal ballots.

It is investigating claims of fraud and voter intimidation in this month's local and European elections and postal delays.

The commission's report is not due until September 13, throwing the timetable for polls in October or November into jeopardy because fresh legislation would be required for traditional voting.

Furthermore, Mr Prescott is understood to have told Labour MPs privately that he takes the threat of the commission ruling out all-postal voting seriously.

The independent body wants voters to be individually registered to boost security - something ministers rejected for this month's all-postal experiment.

The Government was heavily criticised when it ignored the commission's advice by experimenting with all-postal ballots in four, rather than two, regions in this month's elections.

In the Commons yesterday, Mr Prescott said: "If the Electoral Commissioner in his report makes clear that he thinks the ballots are unsafe, we will reconsider that process of voting.

"But we intend to have the election and we intend to put to the people in the North a chance to decide whether they want their own assemblies."

Former Tory leader William Hague said: "The Government's plans are descending into a shambles. The best thing they could do would be to scrap the whole useless idea."