The latest report from the Centre for Cities has unveiled the UK towns and cities experiencing the fastest growth in disposable income. Living standards have surged by 5.2% in 11 leading areas since 2013, surpassing the national average of 2.4%.
Brighton leads the pack with an 8.1% increase, trailed by Worthing at 7.8% and London at 5.8%. These top performers collectively achieved a 27% economic growth from 2013 to 2023, outpacing the national rate of 18.4%, resulting in a 5.2% boost in real disposable income.
If all 63 major cities and towns in the UK had matched the disposable income growth of the top performers since 2013, residents would have seen an average increase of £3,200 in their disposable income over the decade. However, cities like Cambridge witnessed a 3% decline in disposable incomes, indicating that residents could have gained an extra £10,900 if they had matched the top performers.
Similarly, residents of Wigan, experiencing a 1.6% decrease in real disposable incomes since 2013, could have had an additional £7,200 in their pockets. Andrew Carter, the CEO of Centre for Cities, emphasized the importance of economic growth in boosting household incomes over temporary cost-of-living solutions.
Policy decisions on skills, transport, housing, and business support have played a crucial role in translating economic growth into improved living standards in cities like Warrington and Barnsley. The government’s initiatives such as planning reforms, devolution, and the Industrial Strategy are vital for sustaining growth and enhancing living standards.
Carter highlighted the need for cities to create more jobs in sectors aligned with the Industrial Strategy, fostering growth and prosperity. Looking ahead, the Prime Minister’s vision for 2026 aims to see increased job opportunities, higher wages, and robust local growth across the nation.