Recent findings have unveiled the UK towns and cities experiencing the most rapid growth in disposable income.
According to a fresh report by the thinktank Centre for Cities, living standards have surged by 5.2% in 11 leading locations since 2013, surpassing the national average of 2.4%.
Brighton emerged as the top performer with an 8.1% increase, closely followed by Worthing at 7.8% and London at 5.8%. The list of top performers can be found below.
As a collective group, these cities and towns have experienced a 27% economic growth from 2013 to 2023, outstripping the national rate of 18.4%, and have achieved a 5.2% growth in real-terms disposable income.
If all 63 of the UK’s major cities and towns had matched the disposable income growth rate of the top performers since 2013, residents would have had an extra £3,200 on average in disposable income over that period, as per researchers.
In contrast, in Cambridge, where real-terms disposable incomes saw a total decline of 3% since 2013, residents could have had an additional £10,900 over the decade if the city had kept pace with the top performers.
For Wigan residents, who experienced a 1.6% drop in real-terms disposable incomes since 2013, the potential gain could have been £7,200.
Andrew Carter, chief executive of Centre for Cities, emphasized the importance of stronger economic growth in boosting household incomes, highlighting that growth is essential for sustainable improvements in living standards.
He further pointed out that economic growth in places like Warrington and Barnsley has led to higher household incomes and reduced deprivation, attributing these positive outcomes to policy decisions related to skills, transport, housing, and business support.
Carter stressed the significance of government initiatives such as planning reforms, devolution agenda, and the Industrial Strategy in fostering growth in cities and enhancing living standards over time.
He also emphasized the need for cities to create more job opportunities in sectors aligned with the Industrial Strategy, like life sciences, digital, and AI, which not only benefit urban areas but also contribute to the broader economy.
Looking ahead, Carter echoed the Prime Minister’s call for politics to play a role in driving job creation, wage growth, and local economic development across the country by the end of the year.