In the latest findings from the Centre for Cities, it has been revealed which towns and cities in the UK have experienced the quickest growth in disposable income. The report indicates that living standards in the top-performing areas have increased by 5.2% since 2013, surpassing the national average of 2.4%.
Among the top performers, Brighton saw the highest rise with an 8.1% increase, followed by Worthing at 7.8% and London at 5.8%. These cities and towns collectively achieved a 27% economic growth between 2013 and 2023, compared to the national average of 18.4%, resulting in a 5.2% growth in disposable income.
Researchers suggest that if all 63 major cities and towns in the UK matched the disposable income growth of the top performers, residents could have gained an additional £3,200 on average in disposable income over the past decade. For instance, residents of Cambridge, where real-terms disposable incomes fell by 3% since 2013, could have seen an extra £10,900 if they had matched the top-performing areas.
In contrast, residents of Wigan, experiencing a 1.6% decline in real-terms disposable incomes since 2013, could have had an additional £7,200 if they had kept pace with the top performers. Andrew Carter, the CEO of Centre for Cities, emphasized the importance of economic growth in boosting household incomes over focusing solely on the cost of living.
He highlighted that cities like Warrington and Barnsley have seen improvements in household incomes and reduced deprivation due to strategic policy decisions regarding skills, transportation, housing, and business support. Carter underlined the significance of governmental planning reforms, devolution initiatives, and the Industrial Strategy in fostering growth and enhancing living standards consistently.
He stressed the need for cities to create more job opportunities in sectors aligned with the Industrial Strategy, such as life sciences, digital technology, and artificial intelligence. Carter echoed the Prime Minister’s call for politics to aid in economic recovery by ensuring more jobs, higher wages, and robust local growth across the country by the end of the year.