A recent study by the think tank Centre for Cities has identified the UK towns and cities that have experienced the fastest growth in disposable income. Living standards in these top-performing places increased 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, followed by Worthing at 7.8% and London at 5.8%. These cities and towns collectively saw a 27% economic growth between 2013 and 2023, outpacing the national growth rate of 18.4%, leading to a 5.2% increase in disposable income.
If all of the UK’s 63 largest cities and towns had matched the growth rate of the top performers since 2013, residents would have seen an additional average disposable income of £3,200 over the period. Conversely, towns like Cambridge and Wigan experienced declines in real-terms disposable incomes, with potential additional incomes of £10,900 and £7,200 respectively if they had matched the top performers.
Andrew Carter, the CEO of Centre for Cities, emphasized the importance of economic growth in boosting household incomes, highlighting the need for sustained growth rather than temporary cost-of-living fixes. He pointed out that cities like Warrington and Barnsley have benefited from policy decisions focusing on skills, transportation, housing, and business support to drive economic growth and improve living standards.
Carter also underlined the significance of the government’s planning reforms, devolution agenda, and Industrial Strategy in fostering growth and enhancing living standards. He stressed the importance of creating more jobs in sectors aligned with the Industrial Strategy, such as life sciences, digital, and AI, to support urban economies and benefit workers in various sectors.
Looking ahead, Carter echoed the Prime Minister’s call for politics to play a role in aiding economic progress. He emphasized the need for more job opportunities, higher wages, and stronger local growth across the country to be evident by the end of the year.