The latest findings from the Centre for Cities have unveiled the UK towns and cities with the fastest-growing disposable income. According to their report, living standards surged by 5.2% in 11 top-performing locations since 2013, surpassing the national average of 2.4%.
Brighton emerged as the top performer with an 8.1% increase, followed by Worthing at 7.8% and London at 5.8%. These areas collectively experienced a 27% economic growth from 2013 to 2023, significantly higher than the national average of 18.4%, leading to a 5.2% rise in real-terms disposable income.
Researchers estimate that if all 63 major cities and towns in the UK had matched the growth rate of the top performers since 2013, residents would have gained an additional £3,200 on average in disposable income over the period. However, cities like Cambridge, where real-terms disposable incomes declined by 3% in total since 2013, could have seen residents pocketing an extra £10,900 if they had matched the leading areas.
For residents in Wigan, who experienced a 1.6% decrease in real-terms disposable incomes since 2013, the potential additional income could have been £7,200. Andrew Carter, the CEO of Centre for Cities, emphasized the importance of economic growth in boosting household incomes, highlighting that sustained growth is essential for long-term prosperity.
Carter noted that policy decisions on skills, transportation, housing, and business support play a crucial role in driving economic growth and improving living standards. He underscored the significance of government initiatives such as planning reforms, devolution, and the Industrial Strategy in fostering growth across cities and enhancing local economies.
To support continued growth and better living conditions, Carter emphasized the need for cities to create more jobs in emerging sectors like life sciences, digital technology, and artificial intelligence. These sectors not only benefit urban areas but also contribute to the overall economic well-being of the workforce.
Looking ahead, Carter echoed the Prime Minister’s call for politics to demonstrate its ability to drive positive change. He stressed the importance of observing tangible outcomes such as increased job opportunities, higher wages, and enhanced local growth across various regions by the end of the year.