A recent study by the Centre for Cities has identified the UK towns and cities experiencing the fastest growth in disposable income. Living standards in 11 top-performing areas surged by 5.2% since 2013, outpacing the national average of 2.4%.
Brighton led the pack with an 8.1% increase in disposable income, followed by Worthing at 7.8% and London at 5.8%. These locations collectively saw a 27% economic growth from 2013 to 2023, exceeding the national rate of 18.4%, resulting in a 5.2% growth in real disposable income.
If all 63 major UK cities and towns matched the disposable income growth of the top performers since 2013, residents could have gained an extra £3,200 on average over the period. However, Cambridge experienced a 3% decline in real disposable incomes, potentially costing residents an additional £10,900 if it had matched the top performers.
Similarly, Wigan residents faced a 1.6% decrease in real disposable incomes, potentially missing out on £7,200 if they had matched the top-performing areas. Andrew Carter, Chief Executive of the Centre for Cities, emphasized the importance of economic growth in boosting household incomes, highlighting the need for sustained growth to address living standards effectively.
He pointed out that cities like Warrington and Barnsley have seen higher household incomes and reduced deprivation due to strategic policy decisions on skills, transport, housing, and business support. Carter stressed the significance of government initiatives such as planning reforms, devolution, and the Industrial Strategy in fostering growth and improving living standards over time.
He also emphasized the need for cities to create more jobs in emerging sectors like life sciences, digital technology, and artificial intelligence, as these industries not only benefit urban areas but also contribute to the broader economy. Looking ahead, Carter echoed the Prime Minister’s call for political action to drive job creation, wage growth, and economic development across the country by 2026.
