In the United Kingdom, a recent report by the Centre for Cities has identified the towns and cities where disposable income has seen the fastest growth. Living standards in 11 top-performing areas increased by 5.2% since 2013, surpassing the national average of 2.4%.
Brighton led the pack with an 8.1% rise in disposable income, followed by Worthing at 7.8% and London at 5.8%. These locations collectively experienced a 27% economic growth between 2013 and 2023, outpacing the national rate of 18.4%. Overall, real-terms disposable income rose by 5.2% in these areas.
If all of the UK’s 63 largest cities and towns had matched the growth rates of the top performers since 2013, residents could have enjoyed an extra £3,200 in disposable income on average over the decade. For instance, in Cambridge where incomes declined by 3% in real terms, residents could have gained an additional £10,900 had they matched the top-performing areas.
Similarly, residents of Wigan, experiencing a 1.6% drop in real-terms disposable incomes since 2013, could have pocketed £7,200 more. Andrew Carter, the CEO of Centre for Cities, emphasized the importance of economic growth in boosting household incomes, highlighting the need for sustained growth to address living costs effectively.
Carter pointed out that economic growth in cities like Warrington and Barnsley has led to higher household incomes and reduced deprivation, attributing this success to policy decisions on skills, transportation, housing, and business support. He underscored the significance of government initiatives such as planning reforms, devolution, and the Industrial Strategy in fostering growth and improving living standards over time.
Emphasizing the importance of job creation in sectors aligned with the Industrial Strategy, Carter noted the need for cities to support employment opportunities in areas like life sciences, digital technology, and artificial intelligence. He echoed the Prime Minister’s call for political action to drive job creation, wage growth, and economic development across the country, aiming for a positive impact by the end of the year.