Edinburgh has highest average pay in Scotland and seventh highest in UK

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Edinburgh was today named as one of just seven UK cities outside the south-east of England where workers are paid above average wages.

A report on the stark pay divides across the UK found the average salary in Edinburgh was £40,846 a year or £785.50 a week, making it the highest average pay in Scotland and number seven in the UK as a whole.

But average annual salaries in London were £49,500 - which was £13,800 higher than the Scottish average of £35,700.

Edinburgh has the highest average salaries in ScotlandEdinburgh has the highest average salaries in Scotland
Edinburgh has the highest average salaries in Scotland

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The “Cities Outlook 2025” report by the Centre for Cities think tank said that meant the average worker in London has earned by September what the average worker in Scotland will be paid in a year.

Out of the 63 largest towns and cities, the report found nearly all those with above-average salaries for the UK were in the south-east of England, including Reading and Milton Keynes. Just seven places in the rest of the country had salaries above the UK average – Leeds, Warrington, Derby, Swindon, Bristol, Aberdeen and Edinburgh.

The report said the pay divide primarily resulted from some cities having far more “cutting edge” private sector jobs and businesses than others.

Cities with the highest pay such as London and Edinburgh had more than twice as many cutting-edge firms and three times as many cutting-edge jobs – in sectors like biotech and artificial intelligence – as low-paid places such as Burnley, Huddersfield and Dundee.

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It also found that half of the 10 places with the highest average wages also ranked in the 10 least affordable housing markets. And it warned that high housing costs ate into disposable incomes and raised barriers that prevented people moving to these areas to take advantage of the economic opportunities they offered.

Andrew Carter, chief executive of Centre for Cities, said: “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. 2025 needs to be year for delivery, particularly on the UK Government’s Industrial Strategy.

“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.

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“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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