More work to do on rebalancing says think tank

A REPORT  by think tank Centre for Cities reveals that more than 980,000 new jobs were created in UK cities between 2010-14, but that urban wages fell by 5% in the same period – a decrease in average annual salary of £1,300 per city dweller in real terms.

The organisation said the north- south divide is “as wide as ever” as it highlighted Hull, Blackburn and Blackpool as having the lowest average weekly wage, while three areas in the South East, London, Reading and Aldershot had the highest wages.

In its annual report called Cities Outlook 2016, Centre for Cities, highlights the link between low wages and the need to top up people’s incomes with welfare benefits.

It looked at the UK’s 63 largest cities and found that there was a difference of £253 in average weekly incomes from the highest to the lowest paid.

Hull had the lowest weekly wage at £376, Blackburn was second at £404 and Blackpool was a little higher at £414.

No northern towns or cities made the top 10 of high wage, low welfare economies, although two Scottish cities, Aberdeen and Edinburgh do.

Centre for Cities said: “To address this, the Government should continue to increase investment in regional economies through initiatives like the Northern Powerhouse, while bolstering devolution deals by giving cities more control over local tax revenue, skills, infrastructure and housing.”

Chief executive Alexandra Jones said: “Cities Outlook 2016 highlights the size of the challenge facing the Government in building a high-wage, low-welfare economy, and the importance of supporting and empowering UK cities in order to make that vision a reality.

 “One of the most pressing issues is the need to tackle skills-gaps and improve schools attainment, especially in low-wage cities, to help those places attract businesses and jobs, and support more people to move into work, particularly in high-skill sectors.

“This should be a key part of the Government’s Northern Powerhouse initiative alongside investment in infrastructure, and a top priority for local leaders. For cities which have seen strong growth in wages and jobs, the focus should be on addressing housing shortages, to ensure that their success isn’t derailed by a lack of affordable homes.”