A LEADING union is claiming that more than 100,000 jobs will be axed this year unless moves are made to reduce the value of the pound.

The Manufacturing Science and Finance (MSF) union said there was ''no excuse'' for the Bank of England's monetary policy committee (MPC) to avoid cutting interest rates at its two-day meeting which starts today.

The Bank will announce on Thursday whether it has decided to keep rates on hold at six per cent or respond to calls for a cut.

And MSF general secretary Roger Lyons said that thousands of workers in manufacturing in this region may be dependent on that decision.

''With decisive action this month the MPC can make a difference to thousands of manufacturing workers,'' he said

''More than 100,000 jobs are under threat this year if the exchange rate with the euro remains at an uncompetitive level.''

In the past 12 months thousands of jobs have been lost in the traditional manufacturing industries in the North-East with the textile and steel sectors among the worst hit.

But the Institute of Directors said there was ''no immediate need'' for the Bank to follow the lead of the US Federal Reserve and cut rates.

Head of policy Ruth Lea said the MPC should not be ''panicked'' into lowering rates, adding: ''The British economy is still growing quite well and the labour market is still tight.''

The manufacturing industry saw a total of 96,000 job losses during 2000, and among the worst affected areas was the North-East with more than 5,000.

The appeal follows recent calls by TUC general secretary John Monks and GMB leader John Edmonds for the MPC to follow the US lead

The CBI and the British Chambers of Commerce urged the Bank to cut rates by a quarter-point to 5.75 per cent.

The move last weekend was the first time that the CBI has called on the Bank to reduce the cost of borrowing since June 1999.