An average worker in London could quit his job in August and still earn a year's salary of an average worker in Burnley, a report highlighting Britain's severe regional pay gaps says.

Center for Cities has called on the government to shut down regional pay departments and boost economic growth, saying the average annual salary for employees in London is nearly £20,000 higher than in the UK's lowest-paid areas.

The average salary for London workers is 24% higher than the national average and is typically 68% higher than a Burnley worker's annual salary. The average salary in the east Lancashire towns is £29,508, while workers in the capital average £49,455, which they can earn in just eight months.

The think tank said the pay gap was largely due to some cities having more "cutting-edge" private sector jobs and businesses than others, the think tank said as it released its annual Cities Outlook report. Cities with the highest wages, such as London and Cambridge, have more than twice as many cutting-edge companies as towns with the lowest wages in the country, including Burnley, Huddersfield, with more jobs in leading sectors such as biotech and artificial intelligence than Burnley, Huddersfield. More than three times the lowest wages in the country are in towns such as Seafield and Middlesbrough.

Keir Starmer's government has pledged to close the gap between Britain's richest and poorest areas through measures to boost economic growth and devolve power to local communities.

Labor announced last month plans to give mayors sweeping powers to tackle planning delays on major building projects across the UK, under proposals from Deputy Prime Minister Angela Rayner. Ministers are also developing an industrial strategy to guide economic activity across the country.

The UK is one of the most regionally divided regions in Europe, with productivity gaps between London and the rest of the UK and growing income gaps between the richest and poorest towns.

While wages in London are significantly higher than elsewhere in the UK, higher housing costs narrow the gap in earnings after housing costs. The report found that half of the 10 places with the highest average wages also had the least affordable housing.

City centers need to focus on cutting-edge parts of the local economy and meet skills, transport and workspace requirements, it said. It also said swift action was needed to reform the national planning system to make housing delivery easier and faster.

Andrew Carter, chief executive of Center for Cities, said: “Bold changes to planning rules could deliver more homes in the most expensive places and in our big cities where they are needed most.

“The industrial strategy must prioritize developing the frontiers of the economy and avoid calls to do something for all sectors and industries. Devolution in the UK needs to move forward quickly so that more places, especially big cities, have the powers and resources to deliver in many parts of the country A much needed raise.

"This government is committed to putting more money in people's pockets. If people across the country are to have more income at the end of this parliamentary term, then we need to see action and progress on the government's growth ambitions in 2025."