THE Government has been urged to press ahead with the creation of a North West Regional Assembly with tax-raising powers.

Liberal Democrat spokesman Don Foster accused New Labour of dragging its heels on the issue.

He said that with new parliaments in Scotland, Wales and Northern Ireland, and a London Assembly, it was time to bring democracy to the English regions.

He said: "Liberal Democrats are pledging themselves today to decentralise government away from Whitehall and Westminster and to hand power to democratically elected assemblies in nine regions of England.

"Regional government would democratise the region's bureaucratic quangos, bringing them under the scrutiny of elected government. Regional Development Agencies, and the endless regional quangos, are the puppets of Whitehall.

"Plans are already well advanced in the North West but neither the Labour Government not the Tory opposition are keen to let power slip from their hands.

"This is not adding another tier of government: it is reducing central government with its 'control freak' tendencies."

The Liberal Democrats would pass enabling legislation allowing regions to move towards elected assemblies at their own pace. Mr Foster expected the North West to be among the first to take the plunge.

The Assembly would cover a whole range of powers including health, transport, education, tourism, culture, sport, planning, economic development and the environment.

Powers would come from Westminster, not from local authorities. The Assemblies would be financed by central government grant and tax varying powers.

Mr Foster said: "Regional Assemblies would take over the budgets of all the quangos and regional government offices that came under their control. This revenue is currently provided by central government, but, as previously announced, we would ensure that funds were distributed among regions according to need.

"Regions would also be entitled to vary taxes in their region. To increase democratic accountability and make this power more effective, we would gradually reduce national taxes and replace them with regional taxes, so that Regional Assemblies raise more of what they spend."

In the long run, Mr Foster believes transferring power from Westminster to the regions and cutting central government staff would actually save money, which Assemblies would be able to spend on better public services in their areas.