Average anual salaries in some parts of Britain are more than £12k higher than areas with the lowest pay, with the figure jumping to almost £20k when comparing London salaries
Stark differences in pay across Britain are outlined in a report released today.
Average annual salaries in the South East are £12,800 higher – and in London almost £20,000 higher – than in areas with the lowest pay. These included places such as Burnley, Huddersfield and Middlesbrough, the Centre for Cities found.
The think-tank said that by August, the average worker in London will have earned the annual pay of an average worker in Burnley. The pay divide is the result of some cities having more “cutting edge” private sector jobs and businesses.
Places with the highest pay, such as London and Cambridge, had more than twice as many cutting edge firms than the poorest places. They also had three times as many cutting edge jobs in biotech and AI compared to Burnley, Huddersfield and Middlesbrough.
Centre for Cities highlighted the importance of the government delivering on its ambitions to raise economic growth this year. Out of the 63 towns and cities with above-average salaries for the UK, 56 are in the South East.
Only Leeds, Warrington, Derby, Swindon, Bristol, Aberdeen and Edinburgh were outside the region. Reading and Milton Keynes featured highly on the list. Andrew Carter, chief executive of Centre for Cities, said: “The government is right to identify boosting economic growth for every part of the country as a top priority.
“The stark nature of our findings shows an incremental approach is not going to be enough. Boldness, urgency and scale are crucial – 2025 needs to be a year for delivery, particularly on the government’s Industrial Strategy, framework for English devolution and reforms to planning.
“Bold changes to planning rules can deliver more housing in the most expensive places and our big cities, where it’s needed most. The Industrial Strategy must prioritise growing the cutting edge of the economy and avoid calls to do something for all sectors.
“English devolution needs to be fast-tracked so more places, particularly big cities, have the powers to deliver the pay increases that many parts of the country badly need. We need to see action and progress on the government’s growth ambition.”
