THE controversial North-East Assembly was on the move last night - with officials denying they had been forced out of their home.

The assembly, which has been based at the Grade I-listed Guildhall building on Newcastle's Quayside, is moving to a new headquarters in Team Valley, Gateshead, from Monday.

It had only paid a peppercorn rent on the Guildhall, which is owned by Newcastle City Council.

Last night, anti-assembly campaigner Neil Herron, from Sunderland, an arch-critic of the assembly, said: "Newcastle Liberal Democrats probably can't afford to subsidise it with ratepayers' money any longer."

However, Councillor Alex Watson, leader of Derwentside District Council and chairman of the assembly, said there had been no pressure placed on it from the council to move on.

The assembly, which has a £2m annual budget, has said the move will give it more space after it recently merged with the Regional Housing Board to increase its staff to 30.

Coun Watson said there was no legal agreement in place with the city council, which meant it could have been given notice to quit at any time.

He said: "They have always given us verbal assurances that we were okay, but they could have served notice on us at any time to get out.

"We have statutory obligations we need to meet to make sure our staff are secure and housed in premises that meet health and safety at work obligations."

Coun Watson said money was available from the Government to pay for accommodation and the assembly would pay the going commercial rate at its new base.

An assembly spokeswoman said: "It is very much an accommodation issue - the Guildhall is bursting at the seams. It might look huge from the outside, but there is not much office space."