Recent findings have unveiled the UK towns and cities experiencing the most rapid increase in disposable income.
A study conducted by the thinktank Centre for Cities revealed that living standards surged by 5.2% in 11 leading areas since 2013, surpassing the national average of 2.4%.
Brighton emerged as the top performer with an 8.1% surge, followed by Worthing at 7.8% and London at 5.8%. The complete list of top performers is detailed below.
Collectively, these urban areas witnessed a 27% economic growth between 2013 and 2023, exceeding the national rate of 18.4%, resulting in a 5.2% increase in real disposable income.
If all 63 major cities and towns in the UK had matched the disposable income growth rate of the top performers since 2013, residents would have enjoyed an additional £3,200 on average in disposable income over the period.
For instance, in Cambridge, where real disposable incomes declined by 3% overall since 2013, residents could have gained an extra £10,900 during the decade if the city had mirrored the top-performing locations.
Meanwhile, residents of Wigan, facing a 1.6% drop in real disposable incomes since 2013, could have pocketed an additional £7,200.
Andrew Carter, chief executive of Centre for Cities, emphasized the importance of robust economic growth in boosting household incomes, stating that sustainable cost-of-living improvements hinge on such growth.
He highlighted that the past decade has seen living standards grow at a rate similar to what was typically achieved in a single year before 2008.
Carter pointed out success stories like Warrington and Barnsley, where economic growth led to higher household incomes and reduced deprivation, attributing these outcomes to strategic policy decisions on skills, transportation, housing, and business support.
He underscored the significance of the government’s planning reforms, devolution efforts, and Industrial Strategy in fostering city growth and enhancing living standards continuously.
Carter also emphasized the need for cities to create more jobs in emerging sectors like life sciences, digital technology, and AI, as these industries not only benefit urban areas but also have positive ripple effects on the broader economy.
Looking ahead, he echoed the Prime Minister’s call for politics to make a tangible difference by 2026, setting the bar for increased employment, higher wages, and robust local growth across the nation.
