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A new report from the Centre for Cities thinktank has revealed a stark wage disparity between London and Scotland, highlighting ...

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A new report from the Centre for Cities thinktank has revealed a stark wage disparity between London and Scotland, highlighting the persistent regional inequality across the UK.

The Cities Outlook 2025 report found that workers in London earn by September what the average Scottish worker makes in an entire year.

The study, which examined the 63 largest towns and cities in the UK, showed that average annual salaries in London are now £13,800 above the average salary for Scottish workers.

This significant gap underscores the economic dominance of the UK capital and the challenges faced by other regions in keeping pace. London continues to lead the pack with the highest weekly wage in the UK, with workers earning an average of £950.20 per week in 2024.

In contrast, the overall average weekly wage in Scotland stands at £686, further emphasising the substantial earnings gap.

However, the report did highlight two Scottish cities as exceptions to this trend. Edinburgh and Aberdeen were among only seven cities outside the Greater South East region where workers have average salaries above the UK average.

Workers in Edinburgh earn an average of £785.50 a week, while those in Aberdeen pocket £765.80.

Andrew Carter, chief executive of Centre for Cities, commented on the findings: “The UK 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.”

The thinktank’s report comes in the wake of the Labour Government’s commitment to improving living standards across all regions of the country. Carter emphasised the need for immediate action, stating:

“2025 needs to be a year for delivery, particularly on the UK Government’s industrial strategy.”

In response to the report, Scottish Employment Minister Tom Arthur highlighted the strengths of Scotland’s urban economies:

“Our cities nurture innovation and the Scottish Government is supporting further growth in a range of ways, including the City Region Deals and investment in our enterprise agencies.

“Last year, median gross weekly pay for full-time employees was higher in Scotland than in the UK overall. Scotland was also the third highest of the 12 nations and regions in the UK on this measure, behind only London and the south east of England.”

The report suggests that to address this wage disparity, cities and towns with lower workplace wages need to tackle barriers to growth in cutting-edge sectors of their economies. This may involve prioritising high-skill work, investing in skills development, improving transport infrastructure, and creating suitable workspaces.

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