asked the Chancellor of the Exchequer what information his Department has on the effect of the cost of living in the North on the prospects for an increased level of economic activity in that region.

Differences in the cost of housing mean that the cost of living in the north is lower than in some other regions. If relative wage increases reflected this to a greater extent than at present, goods and services produced in the north would become more competitive. As a result, output and employment would be higher.