- Brighton leads UK cities in disposable income growth with an 8.1% increase from 2013 to 2023.
- Cambridge saw a 3% decline in real disposable income since 2013, one of the worst performances.
- Economic policies on skills, transport, housing, and business support are key to income growth in cities.
A few coffees here, a cinema ticket there, perhaps even a bougie olive oil: there are all kinds of ways we might treat ourselves outside of the essentials.
For many, these additions are pure fantasy against high rents, bills and the general cost of living. But there are little pockets of the UK that are bucking the trend, or at least showing signs of moving in the right direction.
In a shock twist, living standards grew by 5.2% in 11 top-performing places, according to new research.
New data by think tank Centre For Cities has revealed the towns and cities where disposable income has increased the most in 10 years.
Brighton was found to have the biggest jump, with residents of the seaside city having £22,100 of income each year to spend on whatever they fancied in 2023 — an 8.1% increase from a decade previous in 2013.
The study looked at ONS numbers on how much each household has in gross disposable income, and the data was adjusted against inflation, so all income data can be compared in ‘real terms’ from year to year. The study also looked at general economic growth in each area to explore how the two might be linked.
In second place was nearby Worthing, with a disposable income growth of 7.8% (with a 29.4% growth rate in the economy and £20,900 in disposable income), while London came in third for growth at 5.8% (disposable income of £27,200 per year).
It wasn’t just southern locations that performed well, though: Barnsley was in fourth at 5.6% (£18,300 in disposable income), while Warrington came in at 5.3% (£20,000) and Bristol 4.6% (£20,500).
The research comes despite a separate YouGov poll earlier this month finding that 54% of Brits are concerned about the cost of living, with 44% also reported struggling to pay for food in the last three months, while 37% have suffered a similar situation with energy bills.
Many of the cities named were miles ahead of the rest of the UK, as the average rate overall was 2.4%.
The study also found that the key to increasing living standards is:
- Working to strengthen local economies
- Giving people access to opportunities to grow in their careers (by offering work and skills support, for example)
- Providing sufficient transport links.
With this in mind, if all the UK’s cities and towns matched the top 10 performers on disposable income growth, then Brits would have £3,200 more in their wallets each year.
The situation is even worse in other areas with particularly low rates of change. Considering that it’s home to one of the world’s oldest universities, Cambridge might seem like a relatively well-off city, but real income has decreased by 3% overall since 2013.
It’s a similar situation elsewhere, too, as Wigan actually experienced a 1.6% fall in real-terms disposable income.
Do you feel like you have enough disposable income to afford things that aren't essential, like rent and bills?
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Yes
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No
Andrew Carter, chief executive of Centre For Cities, said: ‘In places like Warrington and Barnsley, economic growth has translated into higher household incomes and less deprivation. That isn’t accidental: it is shaped by policy choices on skills, transport, housing, and support for businesses.
He added that the government’s plans for development are ‘crucial’ for supporting growth in cities, as well as ‘delivering better living standards.’
‘Cities need to support more jobs in the new economy – in sectors backed by the Industrial Strategy like life sciences, digital and AI,’ he said.
‘These jobs cluster in urban areas and generate benefits for those working in the “everyday economy”, too.’
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