Disparities in Disposable Income Growth Across UK Cities

A recent report by the think tank Centre for Cities highlights significant disparities 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%, more than double the national average increase of 2.4%. Brighton emerged as the top performer with an 8.1% increase, followed closely by Worthing at 7.8% and London at 5.8%. In contrast, cities like Cambridge and Wigan experienced declines in real-terms disposable incomes, with Cambridge seeing a 3% decrease.

Disposable income in 11 towns and cities has risen twice as fast as rest of UK11 cities and towns where living standards rose over twice as fast as rest of UKWages in 11 towns rise twice as fast as rest of UKMapped: Where living standards are growing the fastest in the UKLiving Standards in Welsh Cities Rise Half as Fast as in UK’s Top Performing CitiesIncomes for Stoke-on-Trent residents lag behind rest of UKMilton Keynes’ growth is strengthening demand and capacity, national data shows

The report indicates that the top-performing cities collectively experienced economic growth of 27% over the decade, compared to a national average of 18.4%. If all 63 of the UK’s largest towns and cities had matched this growth rate, residents would have gained an additional £3,200 in disposable income. The findings suggest that cities focusing on building a robust local economy, enhancing access to work through skills support, and improving transport links have fared better in terms of income growth.

Mapped: Where living standards are growing the fastest in the UKWages in 11 towns rise twice as fast as rest of UK11 cities and towns where living standards rose over twice as fast as rest of UKLiving Standards in Welsh Cities Rise Half as Fast as in UK’s Top Performing CitiesDisposable income in 11 towns and cities has risen twice as fast as rest of UKMilton Keynes’ growth is strengthening demand and capacity, national data shows

Andrew Carter, chief executive of Centre for Cities, emphasized the need for government policies that prioritize economic growth rather than merely addressing cost-of-living issues. He stated, “By focusing on tinkering with the symptoms, the government runs the risk of losing sight of the cause.” The report advocates for a more strategic approach to economic development, including support for high-skilled jobs in sectors such as life sciences and digital technology.

Disposable income in 11 towns and cities has risen twice as fast as rest of UK

Critics argue that the government’s current focus on immediate cost-of-living relief measures may overlook the underlying issues affecting economic growth. The report suggests that without a concerted effort to stimulate economic growth, any temporary fixes to living standards will be insufficient.

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

While the Centre for Cities report presents a clear picture of growth in certain areas, it also highlights the struggles of cities like Stoke-on-Trent, where disposable incomes fell by 0.2%. This disparity raises questions about the effectiveness of current policies in addressing regional economic inequalities.

Disposable income in 11 towns and cities has risen twice as fast as rest of UK

Looking ahead, the report calls for a renewed focus on policies that foster job creation and economic growth across all regions. The government’s commitment to investing in infrastructure and reducing regulatory barriers will be crucial in supporting the growth of high-potential sectors. As the Prime Minister noted, 2026 should be a pivotal year for demonstrating the government's ability to facilitate economic recovery and improve living standards nationwide.

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• “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

11 cities and towns where living standards rose over twice as fast as rest of UK

• “The problem underpinning cost of living pressures, stagnant incomes, and persistent deprivation is the lack of economic growth.” — Andrew Carter, Chief Executive, Centre for Cities

Disposable income in 11 towns and cities has risen twice as fast as rest of UK

This report underscores the importance of targeted economic policies to ensure that growth benefits all regions and demographics, ultimately leading to improved living standards across the UK.

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