UK Towns and Cities Where Disposable Income Is Rising Fastest
While many Britons continue to grapple with the ongoing cost of living crisis, new research has identified specific areas across the United Kingdom where disposable household income is showing significant positive growth. According to a comprehensive study by the think tank Centre For Cities, several locations have bucked the national trend with substantial increases in real disposable income over the past decade.
Brighton Tops the List with Impressive Growth
The seaside city of Brighton has emerged as the clear leader in disposable income growth across the UK. Residents in Brighton now have an average of £22,100 available each year for non-essential spending, representing an impressive 8.1% increase from 2013 levels when adjusted for inflation. This substantial growth places Brighton well ahead of the national average and demonstrates how certain urban areas are managing to improve living standards despite broader economic challenges.
Southern Success Stories and Northern Contenders
Following closely behind Brighton is nearby Worthing, which recorded a 7.8% increase in disposable income alongside a remarkable 29.4% growth in its local economy. London secured third position with a 5.8% rise, while Barnsley in South Yorkshire demonstrated that growth isn't confined to southern regions with a solid 5.6% increase. Other notable performers included Warrington at 5.3% and Bristol with 4.6% growth, showing that disposable income improvements are occurring across different regions of the country.
The Cambridge Conundrum and National Concerns
In stark contrast to these success stories, Cambridge has experienced a surprising 3% decline in real disposable income since 2013, placing it among the worst-performing areas in the study. This decline occurs despite Cambridge's reputation as a prosperous university city and technology hub. Similarly, Wigan saw a 1.6% decrease in real-terms disposable income, highlighting the uneven nature of economic recovery across different parts of the UK.
These findings come against a backdrop of widespread financial concern among British households. A separate YouGov poll conducted earlier this month revealed that 54% of Britons remain worried about the cost of living, with 44% reporting difficulties affording food in the previous three months and 37% struggling with energy bills.
Policy Priorities for Economic Improvement
The research identifies several key policy areas that contribute to improved disposable income growth in successful cities. According to Andrew Carter, chief executive of Centre For Cities, strategic decisions regarding skills development, transport infrastructure, housing provision, and business support have proven crucial in translating economic growth into higher household incomes.
'In places like Warrington and Barnsley, economic growth has translated into higher household incomes and less deprivation,' Carter explained. 'That isn't accidental: it is shaped by policy choices on skills, transport, housing, and support for businesses.'
Carter further emphasised the importance of government development plans in supporting urban growth and improving living standards. He highlighted the need for cities to foster employment opportunities in emerging sectors such as life sciences, digital technology, and artificial intelligence, noting that these industries tend to cluster in urban areas and generate broader economic benefits.
The Potential for National Improvement
The study reveals that if all UK towns and cities could match the performance of the top ten disposable income growth areas, British households would enjoy an additional £3,200 in their annual budgets. This substantial figure underscores the significant potential for improving living standards nationwide through targeted economic policies and strategic investment in local economies.
With the national average disposable income growth standing at just 2.4%, the research clearly demonstrates how specific policy interventions and local economic strategies can make a tangible difference to household finances. As the UK continues to navigate economic challenges, these findings provide valuable insights into which approaches might help more communities experience the kind of disposable income growth seen in Brighton and other top-performing areas.
