Economy: 'National pay' cut hitting UK says Heath
16 May 2012 Last updated at 12:05 BST
Britain has been going through a "national pay cut" with most people not having a rise in two years, the City AM editor said.
Allister Heath said people's real-term income was falling by about 2% a year, which was hurting the economy.
But he also said official figures showed the eurozone has been outperforming the UK, with Germany as a powerhouse but other nations were "in crisis".