George Osborne has recruited a keen advocate of regional pay as an adviser, a week before he unveils his latest set of plans for the economy.
Neil O'Brien, who heads the think tank Policy Exchange, is to join the Chancellor's team in the new year.
Next Wednesday, Mr Osborne will make his Autumn Statement a year after he announced plans to consider the controversial policy of regional pay. The Coalition has argued that high public sector pay rates are limiting private sector growth.
But opponents say it is unfair to pay people differently for the same job just because they live in a poor part of the country.
Mr O'Brien has strongly argued for the benefits of regional pay.
Earlier a Policy Exchange report estimated the move could save the UK £6.3 billion a year.
He said that move could help "create more and more jobs in the poorest areas".
He is also a strong advocate of improving the party's standing in the north of England.
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