Mapped: Where living standards are growing the fastest in the UK
Disposable income in 11 towns and cities grew twice as fast compared to the rest of the UK; This challenges a decade of slow growth in living standards since 2013.
Disposable income for residents in areas such as Warrington, Bristol, Barnsley and Brighton increased by an average of 5.2 per cent between 2013 and 2023, compared to 2.4 per cent nationally.
New research from think tank Center for Cities has found that if all the 63 largest cities and towns in the UK matched this growth rate, residents would gain an average of £3,200 extra in disposable income over this period.
The organization said the government should implement policies that will strengthen economic growth. It said: “By focusing on addressing the symptoms, the government risks overlooking the cause. The underlying problem of cost-of-living pressures, stagnant incomes and persistent deprivation is the lack of economic growth.”
“Redistributing slices of the current pie will not deliver increases in living standards that ‘everyone everywhere feels.’ Growing the pie is the only way forward.”
The strongest performing areas were found to be focused on building a stronger local economy, improving access to work through skills support and improved transport links, and reducing constraints on housing and commercial space.
The best-performing city was Brighton, with an 8.1 per cent increase in total disposable income between 2013 and 2023.
The same 11 cities and towns also experienced economic growth of 27 percent over the decade; this rate was 18.4 percent nationally; Warrington had the highest total economic growth at 41 per cent.
It was also revealed that those living in areas where real living standards have fallen are missing out on significant amounts. With real-term disposable incomes down 3 per cent overall since 2013, Cambridge residents would be £10,900 better off over a decade if the city matched the best-performing places.
Center for Cities chief executive Andrew Carter said: “It’s understandable that the government has highlighted the cost of living in recent weeks, but ultimately stronger economic growth is what boosts household income. Without growth, cost-of-living adjustments can only be temporary.”
“At the national level, the last decade has produced the same amount of growth in living standards as we experienced in a single year prior to 2008.”
Mr Carter said economic growth in areas such as Warrington and Barnsley meant higher household incomes and less deprivation. He added: “This is no coincidence: skills are shaped by policy choices on transport, housing and support for businesses.”
He said cities should support more employment in sectors such as life sciences, digital and artificial intelligence. “These jobs are concentrated in urban areas and also provide benefits for those working in the ‘gig economy,’” Mr. Carter said.
“As the Prime Minister has said, 2026 needs to be the year ‘politics shows it can help again’. The test at the end of this year will be whether we see more jobs, higher wages and stronger local growth in more places across the country.”
The Department of Housing, Communities and Local Government has been contacted for comment.
