Average salary in London ‘68% higher than Burnley’

The average worker in London is being paid nearly £20,000 more than the average worker in Burnley.

This is the finding of the Centre for Cities thinktank, which said there are “stark” differences in pay across the UK.

In fact, estimates suggest that by August, a person on the average salary in London will have earned what it would take the average worker in Burnley a year to earn.

The thinktank also found that of the UK’s 63 largest towns and cities, almost all of those with above-average salaries are in south-east England.

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

What’s behind the regional pay divide?

Centres for Cities believes the imbalance is partly because of the nature of the jobs on offer in certain places.

London and Cambridge, for instance, were said to have more than twice as many “cutting-edge firms” in sectors like AI and biotech as places with the lowest average salaries, such as Burnley, Huddersfield and Middlesbrough.

Similarly, London and Cambridge were said to have three times as many “cutting-edge jobs” as other parts of the UK.

Government must deliver on its economic ambitions

In response to its findings, Centre for Cities has said the government must “follow through on its economic policy programme” in 2025.

This, it stated, involves going further with devolution in England, implementing its industrial strategy and reforming the planning system, as well as investing in “fundamentals”, such as skills, transport and workspaces.

“An incremental approach is not going to be enough,” said Andrew Carter, chief executive of Centre for Cities.

“Boldness, urgency and scale are crucial.”

House prices a key factor

High property values are seen as one reason why average salaries vary so greatly across the country.

As Centre for Cities notes, half of the ten places with the highest average wages also rank in the ten least affordable housing markets.

In its report, the thinktank said: “High housing costs eat into disposable incomes and raise barriers that prevent people moving to these areas to take advantage of the economic opportunities they offer.”

Centre for Cities acknowledged that lowering housing costs in areas with high wages, such as London, would be “a challenge”.

However, it said implementing the proposed changes to the national planning system to make housing delivery easier and quicker.

“Bold changes to planning rules can deliver more housing in the most expensive places and in our big cities, where it’s needed most,” Mr Carter continued.