John Prescott is backing plans for regional assemblies

The deputy prime minister, who wants a "yes" vote in a referendum on the issue, made the claim at a debate.

Protesters, who believe assemblies would cause regional rivalry, picketed the meeting in Manchester on Thursday.

Assemblies are being considered in the North West, North East, and Yorkshire and Humber.

Mr Prescott told a packed audience at the city's Midland Hotel an assembly offered "a new opportunity" and would cost about �25m a year to run.

I believe it is the people in the regions, not the civil servants in Whitehall, who know what's best for them John Prescott

"The status quo is not acceptable and change is necessary," he added, saying the current system failed because there was no method of democratic responsibility at local level.

"The government believes in democratic accountability," Mr Prescott continued.

"Giving people of the north the opportunity to vote in these referendums is a clear example of that.

"I believe it is the people in the regions, not the civil servants in Whitehall, who know what's best for them."

'No power'

Responsibilities of assemblies would include creating jobs, housing and planning, culture, tourism and public health.

However, those calling for a "no" vote in the referendum believe the costs would be too high and assemblies would have no more power than councils do at present.

But the government has said a North West Assembly, for example, would receive a �780m grant and influence a further �1,600m in the area.

A "yes" vote would pave the way for elections to the assemblies in spring 2006 or 2007.