The latest report by the thinktank Centre for Cities has unveiled the UK towns and cities that have experienced the fastest increase in disposable income. Living standards in 11 top-performing locations surged by 5.2% since 2013, surpassing the national average of 2.4%.
Brighton emerged as the top performer with an 8.1% rise in disposable income, closely followed by Worthing at 7.8% and London at 5.8%. These cities and towns collectively achieved a 27% economic growth from 2013 to 2023, exceeding the national growth rate of 18.4%, resulting in a 5.2% growth in real-terms disposable income.
According to researchers, if all 63 of the largest UK cities and towns had matched the growth rate of the top performers since 2013, residents would have seen an average increase of £3,200 in disposable income. In contrast, Cambridge saw a 3% decline in real-terms disposable incomes, potentially missing out on an additional £10,900 for its residents over the decade. Similarly, residents of Wigan faced a 1.6% decrease in disposable incomes, equating to a potential £7,200 gain if they had matched the top-performing areas.
Chief Executive of Centre for Cities, Andrew Carter, emphasized the importance of economic growth in boosting household incomes in the long term. He highlighted the significance of policies focusing on skills, transportation, housing, and business support in driving growth and reducing deprivation in cities like Warrington and Barnsley.
Carter also stressed the essential role of government planning reforms, devolution initiatives, and the Industrial Strategy in promoting growth and improving living standards year after year. He underlined the need for cities to create more jobs in emerging sectors such as life sciences, digital technology, and artificial intelligence to foster economic prosperity and benefit the broader workforce.
Looking ahead, Carter echoed the Prime Minister’s call for politics to play a pivotal role in supporting job creation, wage growth, and local economic development in various regions across the country by 2026.