A recent study by the Centre for Cities has unveiled the UK towns and cities experiencing the fastest growth in disposable income. Living standards in 11 top-performing areas surged by 5.2% since 2013, outpacing the national average of 2.4%.
Brighton led the pack with an impressive 8.1% increase in disposable income, followed by Worthing at 7.8% and London at 5.8%. These locations collectively saw a 27% economic growth from 2013 to 2023, surpassing the national average of 18.4%, resulting in a 5.2% rise in real-terms disposable income.
Had all 63 major UK cities and towns matched the growth rates of the top performers since 2013, residents would have enjoyed an additional £3,200 in disposable income on average over the decade. Conversely, in Cambridge, where disposable incomes decreased by 3% since 2013, residents would have gained £10,900 more had they matched the top performers.
For Wigan residents, who experienced a 1.6% decline in real-terms disposable incomes since 2013, the potential additional income would have been £7,200. Andrew Carter, the Centre for Cities’ chief executive, emphasized the importance of economic growth in raising household incomes, stating that sustainable growth is key to improving living standards in the long term.
He highlighted success stories like Warrington and Barnsley, where economic growth led to higher incomes and reduced deprivation, attributing these outcomes to strategic policy decisions in areas such as skills development, transportation, housing, and business support. Carter underscored the significance of government initiatives like planning reforms, devolution, and the Industrial Strategy in fostering growth and enhancing living standards.
He emphasized the need for cities to create more jobs in emerging sectors like life sciences, digital technology, and artificial intelligence, which not only benefit urban areas but also contribute to the broader economy. Looking ahead, Carter echoed the Prime Minister’s call for political action to drive job creation, wage growth, and economic development across the country, setting a benchmark for progress by the end of the year.