The latest report from the Centre for Cities has unveiled the UK towns and cities experiencing the fastest growth in disposable income. Living standards in 11 top-performing locations surged by 5.2% since 2013, outpacing the national average of 2.4%.
Brighton led the pack with an impressive 8.1% rise in disposable income, followed closely by Worthing at 7.8% and London at 5.8%. These areas collectively saw a 27% economic boost between 2013 and 2023, compared to the national average of 18.4%, resulting in a 5.2% increase in real-terms disposable income.
Researchers highlighted that if all of the UK’s major cities and towns matched the growth rate of the top performers, residents could have enjoyed an additional £3,200 in disposable income on average over the decade. For instance, Cambridge residents could have gained £10,900 more if their incomes had risen in line with the top-performing areas.
On the flip side, residents of Wigan, where real-terms disposable incomes dropped by 1.6% since 2013, could have pocketed an extra £7,200 if their incomes had mirrored those of the top performers.
Andrew Carter, the CEO of Centre for Cities, emphasized that sustained economic growth is crucial for boosting household incomes in the long term. He highlighted the importance of policy initiatives focusing on skills development, transportation, housing, and business support to drive economic growth and improve living standards.
Carter also stressed the significance of government planning reforms, devolution strategies, and the Industrial Strategy in fostering growth in cities. He emphasized the need for cities to create more jobs in sectors aligned with the Industrial Strategy, such as life sciences, digital technology, and artificial intelligence, to benefit both urban areas and the broader economy.
Looking ahead, Carter echoed the Prime Minister’s call for politics to play a more active role in supporting job creation, wage growth, and economic development across the country in the coming years.