REGIONAL pay rates and a possible shift of Government money away from the South East could have a huge impact on Kent and Medway.

In one of the Chancellor's least noticed but most radical proposals, he signalled the end of national pay bargaining by suggesting that pay rates should be assessed according to local economic conditions.

This could, in effect, give a nurse in Medway a bigger salary cheque than a nurse in Carlisle.

While workers in the South East hit by out-of-range house prices and the high cost of living would welcome such a move, those in other parts of the country would probably be aggrieved.

A union official admitted it was the Budget "bombshell," warning that the end of national pay bargaining could spark a national strike.

Nigel Bourne, South East regional director of the CBI, based in Sevenoaks, said he was worried that Government investment in start-up businesses might shift away from the South East.

Meanwhile, accountants welcomed plans to share start-up tax revenues with the regions.

The Institute of Chartered Accountants said it was a radical proposal and countered criticism that regional development agencies like SEEDA -- which has an office in Chatham Maritime -- did not have enough cash for economic development.

But, controversially, the institute also welcomed plans to shift 20,000 jobs out of the South East to other regions, claiming it would ease pressure on housing.