Economic Growth and Rising Living Standards in UK Cities

A recent report by the Centre for Cities highlights a significant disparity in disposable income growth across the UK from 2013 to 2023. Eleven towns and cities, including Warrington, Barnsley, and Brighton, have seen their disposable incomes rise by an average of 5.2%, compared to a national increase of only 2.4%. This trend indicates a broader economic growth of 27% in these areas, outpacing the national average of 18.4%. Notably, Warrington recorded the highest economic growth at 41%, making it the only northern city with workplace wages above the UK average.

Disposable income in 11 towns and cities has risen twice as fast as rest of UKWarrington among UK leaders for growth in living standardsAction needed to improve growth of UK towns and cities

The report emphasizes that if all 63 of the UK’s largest towns and cities had matched the growth rates of these top performers, residents would have collectively gained an additional £3,200 in disposable income over the decade. The strongest performers, such as Brighton, which saw an 8.1% increase, have focused on building robust local economies, enhancing access to work through skills support, and improving transport links.

Mapped: Where living standards are growing the fastest in the UK

Andrew Carter, chief executive of Centre for Cities, stated that the government’s focus on immediate cost-of-living issues risks overlooking the fundamental need for economic growth. He noted, “Without growth, cost-of-living fixes can only ever be temporary.”

Living standards in Warrington have bucked national trend

The report argues that the success of cities like Warrington and Barnsley is not coincidental but rather a result of strategic policy choices in areas such as skills development, transport infrastructure, and housing. Carter highlighted the importance of supporting jobs in emerging sectors like life sciences and digital technology, which can generate broader economic benefits.

Mapped: Where living standards are growing the fastest in the UK

Warrington's proactive measures, including the expansion of business parks and the development of affordable housing, have been pivotal in translating economic growth into tangible improvements in living standards.

Action needed to improve growth of UK towns and cities

Despite the positive findings for certain cities, the report also points out areas where living standards have stagnated or declined. For instance, Cambridge experienced a 3% decrease in real-terms disposable income, indicating that not all regions have benefited equally from economic growth. Critics argue that the government’s piecemeal approach to addressing cost-of-living issues fails to tackle the underlying economic challenges.

Cities Outlook 2026

• “It said: “By focusing on tinkering with the symptoms, the government runs the risk of losing sight of the cause.” — Andrew Carter, Chief Executive, Centre for Cities

Mapped: Where living standards are growing the fastest in the UK

• “Andrew Carter, chief executive of Centre for Cities, said: “It is understandable that the Government has shifted its emphasis onto the cost of living in recent weeks, but ultimately it is stronger economic growth that raises household incomes.” — Andrew Carter, Chief Executive, Centre for Cities

Wages in 11 towns rise twice as fast as rest of UK

• “Warrington Borough Council Leader, Cllr Hans Mundry, said: "This report is excellent news for Warrington and its residents, providing independent confirmation that our town remains a premier destination to live and work.” — Cllr Hans Mundry, Leader, Warrington Borough Council

Warrington among UK leaders for growth in living standards

As the UK government aims to improve living standards nationwide, the findings from the Centre for Cities report underscore the necessity of fostering economic growth in urban areas. The upcoming year will serve as a critical test for whether policies can translate into more jobs, higher wages, and sustained local growth across the country. The focus on long-term economic strategies rather than short-term fixes will be essential for achieving lasting improvements in living standards.

Action needed to improve growth of UK towns and cities