The latest findings from the Centre for Cities thinktank reveal the UK areas where disposable income has seen the most significant growth. According to the report, living standards have increased by 5.2% in 11 leading locations since 2013, outpacing the national average of 2.4%.
Brighton topped the list with an 8.1% rise in disposable income, followed by Worthing at 7.8% and London at 5.8%. These areas collectively experienced a 27% economic growth from 2013 to 2023, surpassing the national growth rate of 18.4%, leading to a 5.2% increase in real disposable income.
If all 63 major cities and towns in the UK had matched the growth rates of the top performers since 2013, residents would have had an extra £3,200 in disposable income on average. However, Cambridge saw a 3% decline in disposable incomes over the same period, missing out on an additional £10,900 per resident.
Similarly, Wigan residents faced a 1.6% decrease in real disposable incomes since 2013, equating to a potential £7,200 gain if they had matched the top-performing areas. Andrew Carter, the CEO of Centre for Cities, emphasized the importance of economic growth in boosting household incomes in the long term, highlighting the need for policies supporting skills, transport, housing, and businesses.
He stressed the significance of government initiatives such as planning reforms, devolution, and the Industrial Strategy to drive growth in cities and improve living standards continually. Carter also emphasized the need for cities to create more jobs in sectors like life sciences, digital, and AI to foster economic growth and benefit workers across various industries. Looking ahead, the focus is on achieving more job opportunities, higher wages, and enhanced local growth nationwide by the end of the year.