A recent study by the thinktank Centre for Cities has uncovered the UK towns and cities where disposable income has experienced the most significant growth. Living standards in 11 top-performing locations surged by 5.2% since 2013, surpassing the national average of 2.4%.
Brighton emerged as the top performer with an 8.1% increase in disposable income, followed closely by Worthing at 7.8% and London at 5.8%. These areas collectively achieved a remarkable 27% economic growth between 2013 and 2023, outpacing the national average of 18.4%, and saw a total real-terms disposable income growth of 5.2%.
Researchers estimated that if all of the UK’s 63 largest cities and towns had mirrored the disposable income growth of the top performers since 2013, residents would have enjoyed an additional £3,200 on average in disposable income over the period. For instance, residents of Cambridge, where disposable incomes dropped by 3% since 2013, could have had an extra £10,900 if they had matched the top-performing locations.
Similarly, residents of Wigan, who experienced a 1.6% decline in real-terms disposable incomes since 2013, could have had an additional £7,200. Andrew Carter, the chief executive of Centre for Cities, emphasized that sustainable economic growth is crucial for boosting household incomes in the long term, highlighting the importance of policies supporting skills, transport, housing, and business development.
He pointed out the positive impact of economic growth on cities like Warrington and Barnsley, leading to higher household incomes and reduced deprivation. Carter stressed the significance of the government’s planning reforms, devolution agenda, and Industrial Strategy in fostering growth and improving living standards consistently.
He also emphasized the need for cities to create more jobs in emerging sectors such as life sciences, digital, and AI, which not only benefit urban areas but also have a ripple effect on the broader economy. Looking ahead, Carter echoed the Prime Minister’s call for politics to drive job creation, wage increases, and robust local growth across the country by 2026.