Local residents will have their say on whether major decisions affecting their lives should be taken closer to home rather than in Whitehall.

Voters could go to the polls by autumn 2004 after Deputy Prime Minister John Prescott announced the region would get a referendum on whether it wants a directly-elected North West regional assembly.

This would be responsible for issues such as planning, regeneration, transport, employment and health in the region.

Mr Prescott said such a move would 'bring democracy to the regions, reduce bureaucracy and provide regional accountability'.

North West regional assembly leader Derek Boden welcomed the chance to test public opinion.

Lancaster and Wyre MP Hilton Dawson believes a referendum will give a huge boost to his campaign for the assembly to be based in Lancaster.

A referendum also triggers a review of local government as regions with an assembly will convert to a single tier unitary local authority - Hilton welcomed this news, saying it would create better opportunities for joint working with health, the private and voluntary sectors.

"Our current structure does not work well," he said.

But Morecambe MP Geraldine Smith said she would back a 'No' campaign for a regional assembly.

"The public at large have absolutely no interest in creating another tier of government and bureaucracy. And I think the turn out at the referendum will be abysmally low.

"What we really need in the North West is a greater slice of the resources, not more politicians," she said.

"Local people are demanding a decent health service, good education and that we tackle anti-social behaviour. We should be focusing on those things rather than having a huge distraction of a referendum next year."

Conservative group leader at County Hall Cllr Michael Welsh said an assembly would 'add to the weight of local bureaucracy and remove decisions even further from local people'.

The referendum was an 'unwelcome distraction' at a time of challenging problems, such as regeneration and transport, he said, adding: "We have not detected any grass roots enthusiasm for this latest example of constitutional jiggery pokery."

Ben Wallace, Lancaster Conservative parliamentary spokesman, said the proposals were 'about seizing local control from parish, district and county councils towards big expensive assemblies'.

This meant 'a bigger tax bill' and 'an explosion of expensive bureaucracies', with planning removed from local control, he said.

"We would be in danger of losing Lancashires voice."