A lack of confidence in the postal voting system led to the postponement of the referendum on regional government, John Prescott has admitted.

The Deputy Prime Minster spokes after plans to hold the referenda were dropped yesterday.

As reported in later editions of yesterday's Telegraph and Argus, ministers said the vote had been dropped despite early protestations from Mr Prescott's department that everything was on track.

The referendum in October was to have been all-postal but confidence in the postal voting system is low, particularly in Bradford.

There were several police investigations into allegations of voter fraud and intimidation during and after last month's Council election and extra police patrols were launched in Lidget Green during the voting period.

Police have not yet found any evidence of criminal behaviour, but the Electoral Commission is expected to publish a report on the process at the end of August.

Deputy Prime Minister Mr Prescott, whose brainchild the assembly was, said: "It is crucial that the referenda are held against a background of confidence in the voting system."

Campaign group Yorkshire Says No, set up to oppose the Government's plan, said it would be winding up. Its leaders believe the vote will never happen and say they are celebrating a "victory."

Former head of Bradford Chamber of Commerce and Yorkshire Says No chairman John Watson said: "It means we have won. The Government may be talking about postponement, but it is cancellation by another name."

The decision to postpone the vote means Yorkshire and the Humber will not go to the polls on November 4, as originally planned.

Lord Rooker, who made the announcement yesterday, also scrapped the referendum in the North West, but said it would take place in the North East where there were fewer concerns about postal voting. But his boss Mr Prescott was adamant it would still go ahead in Yorkshire.

Meanwhile Yorkshire Says No has hit out at the £5 million it cost to launch the Your Say campaign which was recently rolled out in the North West and North East. Adverts on television and in newspapers were designed to begin the public debate about the assembly.

Mr Watson said: "It is one of the most outrageous wastes of public expenditure for party political interests I have ever seen."

Jane Thomas, of the pro-assembly Campaign for Yorkshire, was disappointed but upbeat. "The campaign continues," she pledged.

Marsha Singh, Labour MP for Bradford West, said: "I think it is right to give the people of Yorkshire longer to debate the issues in the draft bill. I'd like to see an assembly in Yorkshire."

But David Curry, Tory MP for Skipton and Ripon, said the "U-turn" was "tremendously embarrassing" for Mr Prescott.