TONY Blair appeared yesterday to rip up a key Government pledge to close the North-South divide when he urged people to not to worry about it.

Speaking to regional journalists in London, the Prime Minister said the gap between rich and poor in the North-East - rather than between the North and the South - was now the crucial issue.

His comments come weeks before the Government is required to demonstrate progress on its long-standing aim to "reduce the persistent gap in growth rates between the regions".

The target has long been seen as the key test of whether Labour can bring living standards in its Northern heartland within touch of those in the booming South.

At the House of Commons event, Mr Blair was asked whether he regretted, as his premiership came to a close, not having achieved more to bridge the North-South divide.

He replied that the most important thing was that the North-East looked at its own strengths and not worry about comparisons with London and the South-East.

He said: "You should look at the degree to which we have improved in terms of economy and public services over the past few years, because I think we have come a long way in the North."

Mr Blair admitted he had "occasionally got into trouble" in the past by suggesting it was difficult to compare the economic performance of regions with each other.

But he added: "It is more sensible to examine the disparities within regions and see how you help that, rather than pitting one region against another."

It is possible that Chancellor Gordon Brown will try to demonstrate progress when he delivers his pre-Budget report next week.

The Treasury's public service agreement target 2.3 aims to close the gap between the growth rate in London, the South-East and the East and the other six regions, including the North-West.