BUSINESSES in Leeds paying high salaries should consider relocating to places like York or Harrogate to make big savings.

That is the conclusion of a new salary survey report from Yorkshire-based Aquarius Management Consultants, commissioned by the Skipton Building Society.

It points out that while the average salary in Leeds is £23,000, it is £21,500 in York and £20,000 in Harrogate.

Sarah Mundy, consultant for Aquarius, said the pay gap could be even greater in rural areas, and as much as 35 per cent could be saved on a wage bill either by relocating or simply by being aware of the average salary for the area and benchmarking it. "This regional difference can have a significant effect on a company's overheads. There will always be city centre hotspots, where both employers and employees want to be and are willing to pay the price for a prestigious address.

"It is vital for businesses to build and retain a well-motivated workforce that must be fairly remunerated whatever their location."

She said it was just as easy to pay above the going rate as to underpay.

The Skipton Building Society commissioned the survey from Aquarius for the sixth successive year.

Updated: 10:33 Thursday, January 12, 2006