Mansfield and Ashfield workers earn the UK economy more than £50 an hour

A leading policy thinktank said the ‘productivity output gap’ is one of the biggest challenges facing the British economy.

New figures from the Office for National Statistics (ONS) show Mansfield had a Gross Value Added (GVA) of £23.92, which was an increase of three per cent on the previous year.

Ashfield’s workforce had a GAV of £29.79 per hour worked in 2018, an increase of one per cent

However, both areas are still below the UK average of £35.03 per hour.

GVA is the final value of the goods and services produced in an area and is used to measure contribution to the national economy.

The East Midlands as a whole has a GVA of £30.

Paul Swinney, director of policy and research at urban policy research unit Centre for Cities, said: “The productivity output gap between northern and southern cities is one of the biggest challenges facing the British economy.

“While cities and large towns in south-eastern England are among the most productive places in Europe, those in the north lag far behind and, as a result.

“Addressing this disparity should be central to the Government’s levelling up agenda.

“Transport investment within big cities will be important, and so will spending on adult education to upskill the workforce.”

The ONS says that areas with high labour productivity will usually be home to a major manufacturing site or a large utility sector, and those with low productivity are typically more rural or isolated places.

A spokesman for the Department for Business, Energy and Industrial Strategy said: “This Government remains absolutely committed to the Northern Powerhouse and levelling up growth across the whole country to drive productivity, empower communities and rebalance opportunity.

“Alongside local industrial strategies agreed with local business and civic leaders, we are committed to investing record levels in research and development throughout the UK and supporting local innovation through our £236 million Strength in Places Fund.”