They say the move is "expected" because the government finds assemblies too critical of national policy. The South East Regional Assembly – SEERA – is also dominated by Conervative members whose ideas on housing numbers for the south east are at odds with Gordon Brown’s enthusiasm to build 3 million more homes in the UK.

Housing minister Yvette Cooper called SEERA's target housing numbers "bonkers" on BBC's The Politics Show today.

SEERA has 112 members drawn from local authorities, the Third Sector and business and is responsible for housing targets, transport and production of the South East Plan - the spatial strategy for the region. 

The Times newspaper reported on Friday that Chancellor Alistair Darling will transfer housing and planning powers from the eight assemblies outside London to their corresponding regional development agencies – in the case of the south east - SEEDA.

The government is no commenting on the Conervative speculation saying only that "The sub national review will be published shortly and we're not commenting on speculation before that point."

There is considerable uncertainty not only on the content of the review, but also on when it will be published. Some sources expect it could be published as early as next week.