THE gap in wages between the North-East and London has widened more dramatically under Tony Blair, figures have revealed.

Workers in the North-East are earning £48.30 more a week than in 1998, but this is dwarfed by the £95 rise in London over the same period.

The North-East has also lost out in percentage terms.

Although average earnings have risen by 15 per cent in real terms over six years, London salaries have gone up by 21 per cent.

The increase in the North-East is comfortably the lowest in the United Kingdom, below the West Midlands, at £53, Wales, at £54.10, and the East Midlands, at £54.70.

The Liberal Democrats, who compiled the figures, said they completely undermined the Prime Minister's insistence that there was no North-South divide.

Paul Holmes, the LibDem's work spokesman, said: "The continued imbalance of earnings between regions will be to the detriment of Britain as a whole. Average wage measures offer a snapshot of life under this Government's two-speed economy.

"While the south of the country is booming, other regions are locked in economic stagnation."

The Office for National Statistics figures show that the average North-East worker will earn £373.20 a week this year, compared with £545.20 in London.

The North-East figure is also significantly below neighbouring Yorkshire and the Humber, at £393.50, Scotland, at £394.50, and the North-West, at £398.70.

A report by a Commons select committee last year highlighted how the Government was likely to fail in its pledge to close the North-South divide. Ministers have set targets for stimulating growth everywhere, while reducing the gap between rich and poor areas by 2012.

But the committee shadowing the Office of the Deputy Prime Minister said this policy of levelling-up was doing little to help people in Middlesbrough or Penzance.