Regionalise?

If MPs claiming for a second home in London whilst undertaking parliamentary business is still a controversial political hot potato, what, if any, are the alternatives?
In the late 1990s John Prescott championned the Regional Assembly, regional government to bring democracy closer to the people.
England had been separated into 9 regions including London and in 1999, the North West Regional Assembly was established. Based in Wigan in Greater Manchester it encompassed 48 members, both elected and unelected. Eventually the plan was to replace this with a fully elected, devolved assembly similar to the model set by the Greater London Authority.
In 2004 the people of the North East of England were asked to vote in a referendum on whether a fully elected regional assembly was to be established. The No vote won by 78% to 22% - a clear indication of intense public opposition.
The suspicion was that although Wales and Scotland and to some extent London had been devolved and given real local powers, the remaining 8 proposed regional assemblies in England would have no powers over Education, Health, Transport or Law and Order. The Euro sceptic view also prevailed in that the suspicion was that these regional assemblies were answerable to Brussels and not the UK Parliament.

However, there is currently a crisis in tust within politics in that people believe that there is a chasm between elected MPs and local issues - people seemingly have never felt further away from democracy.

http://www.guardian.co.uk/commentisfree/2009/sep/10/voters-politics-parliamentary-system

The North West Regional Assembly was replaced by 4NW after the No vote from the people of the North East. This has responsibility for housing, planning, transport and economic development in the North West region and is still currently based in Wigan.

http://www.4nw.org.uk/

"....4NW has a board of members including council leaders from each of the five sub-regions, Cumbria, Cheshire, Lancashire, Merseyside and Greater Manchester, along with seven representatives from the private, non-governmental sector such as Manchester Airport Group, North West Universities Association and the North West Trades Union Congress - people who are responsible for delivering the strategy proposals at local level in the northwest....."

4NW works in close conjunction with the Northwest Regional Development Agency based in Warrington. Together they are preparing the proposed 'Regional Strategy for the Northwest.'

"...The strategy will promote the sustainable economic development and regeneration of the region, and 4NW will ensure it is democratically accountable and wholly relevant to the needs of this region...."

Are agencies like 4NW and NWDA models for future development of local democracies or are they watered down versions of the proposed elected assemblies with little power to influence everyday lives?
Could agencies like this be combined under one clear and accountable roof - exemplars of sustainable, ecological development within the heart of the regional city?