The study from Centre for Cities shows workers in London earn in eight months what people in Burnley, Lancashire earn in a year.
Objectively, pay day is the one day of the month we all look forward to, especially in January. However, new research from Centre for Cities – the leading independent think tank for economic growth in areas across the UK – has revealed shocking new findings that could alter how people feel about their pay – especially if they’re based in the North.
Experts discovered that average annual salaries in the Greater Southeast are £12,800 higher than in places as Burnley, Huddersfield and Middlesbrough – all of which were revealed to have the lowest pay levels in the country.
To give some context, the research means that by August, the average worker in London has earned what it would take someone in Burnley a year to make.
Overall, out of the largest 63 towns and cities nearly all those with above-average salaries for the UK are in the Greater Southeast, including Reading and Milton Keynes. Though just seven places in the rest of the country have salaries above the UK average which include Leeds, Warrington, Derby, Swindon, Bristol, Aberdeen and Edinburgh.
According to the report, the pay divide stems primarily from some cities having more ‘cutting edge’ private sector jobs and businesses than others.
As a result of the findings, experts are now calling on the government to create more opportunities in the towns that have lower average salaries.
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.’
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