CAMPAIGNERS for a regional assembly have played down fears that it could widen the North-South divide.

A report published by the Institute for Public Policy Research (IPPR) at the weekend suggested that regional assemblies could make the current situation worse by competing for Government hand-outs.

Brian Hall, of the Campaign for a North East Assembly, said he agreed with much of the report about the growing divide, but dismissed fears that devolved government for the region would widen the gap.

He said: "It's obviously something we as a campaign completely disagree with.

"Not only would a unified regional assembly voice have quite a major impact on the UK system of funding, we could work alongside Wales or Yorkshire, for example, to make sure that voice is heard in the South-East.

"It would also give us the ability to decide our own priorities.

"It's not just a begging bowl that the North-East is going to send to London. We are going to send a strong voice to London, that's for sure."

Mr Hall added: "The other side of the coin is the fact this is about our region and the ability to do something for ourselves.

"Of course, we need funding, but our whole history is littered with innovation and adaptation.

"An assembly would help realise that energy in terms of, for example, encouraging small business centres and firms with North-East roots, taking away some of the headaches we see every month when firms with no headquarters here move away."