THE earnings gap between the affluent South and the poorer North has widened, according to the latest figures.

Under the Labour Government, workers in London have seen their pay packets grow at more than three times the rate of those in the North-East.

Between 1997 and 2002, weekly pay increased by only £22.30 in real terms in the North-East, compared to £80.30 in London, according to the figures from the Office for National Statistics (ONS).

Liberal Democrats, who obtained the statistics from the House of Commons Library, said they showed that Labour had failed to tackle the North-South divide.

But the region's business leaders said a vibrant local economy was proof that standards of living were improving.

The North-East is also failing to keep pace with fellow poor relations Wales and the North-West.

The ONS data showed pay packets for workers in Wales had risen by an average of £31.80 a week in the same period, and wages in the North-West rose by £38.25 a week.

In the South-East, employees enjoyed an extra £62.20 a week compared with 1997, and in the east of England, they rose by £55.80.

Paul Holmes, Liberal Democrat work spokesman, said: "The continued imbalance in earnings between regions will be to the detriment of Britain as a whole.

"Average wage measures offer a snap-shot of life under this Government's two-speed economy. While the south of the country is booming, other regions are locked into economic stagnation. It is unsurprising that Labour's support is crumbling in its traditional strongholds in the North, when the Government has ignored the huge disparities in earnings."

Steve Rankin, regional director of the Confederation of British Industry, was sceptical about the figures.

He said: "There is a lot of evidence suggesting we have a booming economy, with one of the lowest levels of unemployment in the country with people spending money.

"That tells use we are probably more prosperous today than we were yesterday."

He said the amount and quality of regional statistics was poor.

A spokesman for regional development agency One NorthEast said: "A major part of One NorthEast's remit to help regenerate the region is to assist in the creation of high quality, well paid jobs for the North-East.

"We are beginning to see major signs of progress in areas of science and technology, for example, with growing investment and career opportunities in areas such as biotechnology and the growing influence of new firms in the digital technology sector."

The ONS figures show average earnings of £464.70 a week across Britain in April 2002, with highest weekly pay in London (£624.10), the South-East (£496.70) and the east of England (£459.60).

Lowest average weekly earnings were in the North-East (£399.30), Wales (£399.70) and Yorkshire and the Humber (£409.90).