The latest findings from the Centre for Cities reveal the UK locales experiencing the fastest growth in disposable income. According to the report, living standards surged by 5.2% in 11 leading areas since 2013, surpassing the national increase of 2.4%.
Brighton emerged as the top performer with an 8.1% rise, followed by Worthing at 7.8% and London at 5.8%. These cities and towns collectively saw a 27% economic expansion from 2013 to 2023, outpacing the national growth rate of 18.4%, leading to a 5.2% growth in real disposable income.
Researchers estimate that if all 63 major UK cities and towns matched the income growth of the top performers, residents would have gained an average of £3,200 more in disposable income over the decade. In contrast, Cambridge experienced a 3% decline in real disposable incomes, potentially missing out on £10,900 per resident if it matched the leading areas.
Residents of Wigan, where real disposable incomes fell by 1.6% since 2013, could have pocketed an additional £7,200 over the same period. Andrew Carter, the CEO of Centre for Cities, emphasized the importance of economic growth in boosting household incomes, stating that sustained growth is essential for long-term improvements in living standards.
Carter highlighted the success stories of cities like Warrington and Barnsley, attributing their higher incomes and decreased deprivation to strategic policy decisions regarding skills, transportation, housing, and business support. He underscored the significance of government initiatives such as planning reforms, devolution strategies, and the Industrial Strategy in fostering growth and enhancing living standards.
Looking ahead, Carter emphasized the need for cities to create more jobs in emerging sectors like life sciences, digital technology, and artificial intelligence, aligning with the goals of the Industrial Strategy. He echoed the Prime Minister’s call for political action to drive job creation, wage growth, and economic prosperity across the nation by 2026.