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UK Regional Pay Gap Widens as London Salaries Outpace National Average

Think tank report highlights stark disparities in wages, with London workers earning nearly £20,000 more annually than those in lower-paid cities like Burnley.

  • The average annual salary in London reached £49,455 in 2024, 33% above the UK national average of £37,206.
  • Workers in Burnley, with an average salary of £29,508, earn 68% less than their London counterparts, highlighting significant regional pay inequality.
  • The pay gap is attributed to the concentration of 'cutting-edge' industries like biotech and AI in high-paying cities such as London and Cambridge.
  • Seven of the ten cities with the lowest number of 'new economy' businesses are in the North of England, underscoring regional economic disparities.
  • The Centre for Cities urges bold government action in 2025, including reforms to planning rules, increased devolution, and prioritization of high-growth industries in its Industrial Strategy.
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