§ Mr. Wolfsonasked the Secretary of State for Employment if he will make a statement on the future of the London weighting indices published by his Department.
§ Mr. Tebbit:London differentials are a matter for employers and employees to determine according to the circumstances of each firm or industry. But in the Government's view the indices encourage negotiators to place too much emphasis on the need to compensate employees for the additional costs of working in London and too little on the need to set rates of pay which the employer can afford, and which are sufficient to recruit, retain and motivate employees in London. Moreover, the indices are based on expenditure patterns which are now out of date. Therefore, I have decided to discontinue publication of the indices.