A new study by the think tank Centre for Cities has exposed significant disparities in average annual salaries across the UK, underlining a growing divide between the country’s wealthiest and poorest areas. The findings reveal that workers in London earn nearly £20,000 more annually than those in towns like Burnley, Huddersfield, and Middlesbrough. In the South East, the salary gap stands at an average of £12,800.
By August each year, London workers typically surpass the total annual earnings of their counterparts in Burnley, demonstrating the scale of the divide. These figures are attributed to the prevalence of high-paying private sector roles in areas like London and Cambridge, driven by industries such as biotechnology and artificial intelligence.
The Divide: Regional Salary Analysis
The Centre for Cities’ report analysed 63 towns and cities, finding that only seven areas outside the South East offer above-average salaries. These exceptions include Leeds, Warrington, Derby, Swindon, Bristol, Aberdeen, and Edinburgh. The findings highlight how economic growth and higher-paying roles remain disproportionately concentrated in specific regions.
Andrew Carter, chief executive of Centre for Cities, commented:
“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.”
Calls for Bold Action
The think tank emphasised the need for decisive action in 2025 to address these disparities, including:
- Reforming Planning Rules: Prioritising housing developments and construction in the most expensive and economically active regions.
- Industrial Strategy Focus: Supporting cutting-edge industries such as AI rather than distributing resources equally across all sectors.
- Accelerating English Devolution: Empowering local governments with resources and authority to drive regional economic improvements.
These measures are seen as critical for creating balanced economic growth and ensuring that all parts of the UK benefit from higher wages and increased opportunities.
The Workers Union Says…
“Centre for Cities has stated that without bold reforms, economic disparity will continue to widen, leaving towns and cities outside the South East lagging behind. As the Government sets its sights on economic growth targets, 2025 is poised to become a pivotal year for implementing impactful policies.”
