A landmark study has revealed that eleven towns and cities across the United Kingdom have experienced a remarkable surge in disposable income, growing at twice the rate of the national average over the past decade. The report from the Centre for Cities thinktank highlights a significant economic divergence, with top performers like Warrington, Barnsley, and Wakefield leading the charge through strategic local development.
Disposable Income Soars in Strategic Hubs
The analysis, covering the period from 2013 to 2023, shows that disposable income for residents in these eleven leading locations rose by an average of 5.2%. This starkly contrasts with the overall increase of just 2.4% for urban areas across the UK. The thinktank calculated that if all 63 of Britain's largest towns and cities had matched this growth rate, individuals would have gained an extra £3,200 in disposable income on average.
The Formula for Success: High-Skill Jobs and Tradeable Industries
The report identifies a clear pattern among the top performers. These areas have successfully cultivated a robust local business environment centred on higher-skilled employment. A significant concentration of productive firms operates in "tradeable" sectors such as software development, marketing, and finance—industries capable of selling goods and services beyond their immediate locality.
Andrew Carter, Chief Executive of Centre for Cities, emphasised the deliberate strategy behind this success. "If you look at these top performers, what they focus on is increasing higher-skilled, cutting-edge jobs in their area and being very deliberate about trying to do that," he stated.
Case Studies: Warrington and Barnsley
Warrington in Cheshire emerged as a standout example, recording the highest total economic growth of all locations studied at an impressive 41%. Since 2013, both its economic and disposable income growth have been 2.2 times the national average. It holds the distinction of being the northern English city with the highest disposable income and the only one in the region where workplace wages exceed the UK average.
Carter pointed to the tough decisions behind Warrington's progress. "In Warrington, they've enabled and supported the expansion of some of their edge-of-town business parks. They've also taken reasonable chunks out of their green belt to build more homes, which is not an easy job," he explained.
Meanwhile, Barnsley has capitalised on its strategic position along the M1 corridor to transform into a major logistics hub. The local council facilitated this growth by opening up industrial land around motorway junctions. Since 2015, the town has added 6,000 private service jobs, with a third classified as high-skilled. Disposable income in Barnsley rose by 5.6% between 2013 and 2023.
Beyond the Top Performers: The Growth Gap
The top eleven areas collectively achieved an economic growth increase of 27% over the decade, significantly outperforming the urban area average of 18.4%. Other high performers included Brighton with an 8.1% rise in disposable income, Worthing at 7.8%, and London at 5.8%.
However, the report also sheds light on areas that have struggled. In Cambridge, for instance, where housing costs consume an average of 17% of outgoings, real-terms disposable incomes actually declined by 3% since 2013. Residents would have been £10,900 better off over the decade if Cambridge had matched the growth of the top-performing towns.
A Critique of Government Policy
The Centre for Cities report offers a pointed critique of current governmental approaches. It argues that both central and local authorities are often preoccupied with piecemeal measures to alleviate the cost of living, such as capping bus fares or providing energy bill support. Instead, the thinktank advocates for a sharper focus on policies designed to stimulate sustained economic growth, which it identifies as the root cause of income stagnation and deprivation.
"By focusing on tinkering with the symptoms, the government runs the risk of losing sight of the cause," the report warns. "The problem underpinning cost of living pressures, stagnant incomes, and persistent deprivation is the lack of economic growth."
The study concludes that the success stories of Warrington, Barnsley, and their peers demonstrate the tangible benefits of a clear, localised strategy focused on business development, skills, and housing—a model it suggests could be more widely adopted to boost prosperity across the UK.
