Regional pay divide shows Government must follow through on plans for growth – Centre for Cities

Average annual salaries in the Greater South East are £12,800 higher – and in London nearly £20,000 higher – than in places with the lowest pay such as Burnley, Huddersfield and Middlesbrough, according to the ‘Cities Outlook 2025’.

This means that by August, the average worker in London has earned what the average worker in Burnley will take a year to earn. 

The pay divide primarily results from some cities having more ‘cutting edge’ private sector jobs and businesses than others.

Places with the highest pay – such as London and Cambridge – have more than twice as many cutting-edge firms and three times as many cutting-edge jobs, in sectors like biotech and artificial intelligence (AI), as low pay places such as Burnley, Huddersfield and Middlesbrough. 

In ‘Cities Outlook 2025’, the Centre for Cities urged the Government to follow through on its economic policy programme – including English devolution, the industrial strategy, and planning reforms. 

Out of the 63 largest towns and cities, nearly all of those with above-average salaries for the UK were found in the Greater South East, including Reading and Milton Keynes.

Just seven places in the rest of the country had salaries above the UK average – Leeds, Warrington, Derby, Swindon, Bristol, Aberdeen and Edinburgh. 

Centre for Cities called for evidence-based assessments on the weaknesses in local economies, prioritising work in high-skill over high street activity and investing in fundamentals – such as skills, transport and workspace.