A report out this morning shows the stark pay divides in the UK. 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.
The Centre for Cities Outlook 2025 found that the lack of cutting-edge jobs outside London and the Greater South East means just seven places in the rest of the UK have salaries above the national average – Leeds, Warrington, Derby, Swindon, Bristol, Aberdeen and Edinburgh.
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 AI – as low pay places such as Burnley, Huddersfield and Middlesbrough.
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. It is the only sustainable route to higher wages. But the stark nature of Cities Outlook’s findings shows an incremental approach is not going to be enough. Boldness, urgency and scale are crucial. 2025 needs to be year for delivery, particularly on the Government’s Industrial Strategy, framework for English devolution and its reforms to planning.
“Bold changes to planning rules can deliver more housing in the most expensive places and in 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 and industries. And English devolution needs to be fast-tracked so more places, particularly the big cities, have the powers and resources to deliver the pay increases that many parts of the country badly need.
“This government has promised more money in people’s pockets. If people across the country are going to earn more by the end of the parliamentary term, then 2025 is year we need to see action and progress on the Government’s growth ambition.”
