The latest report from the Centre for Cities has uncovered the UK towns and cities experiencing the fastest growth in disposable income. Living standards have increased by 5.2% in the top-performing 11 locations since 2013, surpassing the national average of 2.4%.
Brighton leads the pack with an impressive 8.1% rise, followed closely by Worthing at 7.8% and London at 5.8%. Overall, these areas saw a 27% economic growth from 2013 to 2023, outpacing the national rate of 18.4%, resulting in a 5.2% rise in real disposable income.
If all 63 major UK cities and towns had matched the growth rate of the top performers since 2013, residents could have enjoyed an extra £3,200 on average in disposable income over the decade. Conversely, Cambridge saw a 3% decline in disposable incomes, potentially missing out on an additional £10,900 per resident. Wigan residents, experiencing a 1.6% decrease in real disposable incomes, could have had an extra £7,200 if they had matched the top performers.
Andrew Carter, CEO of Centre for Cities, emphasized the importance of economic growth in boosting household incomes, noting that sustainable growth is key for long-term prosperity. He highlighted successful cases like Warrington and Barnsley, attributing their improved living standards to strategic policies focusing on skills development, transportation, housing, and business support.
Carter underlined the significance of government initiatives such as planning reforms, devolution strategies, and the Industrial Strategy in fostering growth and enhancing living standards. He stressed the need for cities to promote job creation in sectors aligned with the Industrial Strategy, like life sciences, digital technology, and artificial intelligence, to drive economic progress and benefit a broader range of workers.
Looking ahead, Carter echoed the Prime Minister’s call for political actions that contribute to job creation, higher wages, and robust local growth across the country by 2026. The success of these efforts will be measured by the tangible improvements in economic indicators and opportunities in various regions.