Controversial plans for a mini-Parliament covering Sussex were today shelved by the Government.

Deputy Prime Minister John Prescott was expected to announce that the South-East was not among the first three regions in the country to be granted permission to hold a referendum.

Greater support for the regional assembly proposals has been shown in the North East, North West and Yorkshire and Humber - with votes taking place in October 2004.

Local government minister Nick Raynsford said: "The evidence from the soundings exercise that we have been carrying out in recent months does show there are quite wide variations in the level of interest between different regions.

"We always expected that and our policy is to allow referendums in those regions where there really is an interest but not to impose referendums everywhere."

The plans split politicians in Sussex, which had never been seen as a favourite to take forward Mr Prescott's dream.

Critics pointed out Brighton and Hove would have been lumped together with places as far away as Milton Keynes.

They also claimed the assembly - which would have covered Oxfordshire, Buckinghamshire, Berkshire, Hampshire, Surrey and Kent - would have cost £200 million a year to run.

Voters would also have been faced with a massive reorganisation of local government.

They would have been asked to choose between axing county or district councils to make way for the assemblies.

Mid Sussex MP Nicholas Soames said: "Regional government, in my view, would do nothing to give power to local people.

"Instead, decisions that are currently taken by county councils would be made further away, and by a regional assembly with little specific interest in any one area."