REGIONAL PAY AND THE NORTH WEST

That this House is greatly concerned at the Chancellor of the Exchequer's Budget announcement of his intention to introduce regional pay; recognises that this will impact on public sector employees who have already experienced a pay freeze; notes that a one per cent reduction in regional pay in the North West would take out some 200 million annually from the regional economy, some 75 million from Greater Manchester and 45 million from Merseyside, areas of high and growing unemployment; is aware that this reduction in demand will have a negative knock-on effect on the private sector, limiting regional growth and destroying private sector jobs; and calls on the Government to think again on a measure which would be economically incompetent and socially divisive.