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March 2025 - Local Government

The average person in the UK is over £10,000 poorer since 2010, according to a new study: A recent study has shown that as the UK economy has continued to falter since 2010, the average person in the UK has £10,200 less available to spend or save compared to what they would have had if the economy had consistently grown at its 1998-2010 rate.

The study by the Centre for Cities in Cities Outlook 2024, analysed the economic performance of 63 of the UK’s major towns and cities in by examining key metrics such as job creation, productivity, income, and housing affordability. The study demonstrates that although most cities and large towns have witnessed an upturn in job growth since 2010, the decline in productivity growth, income, and the steep rise in housing costs have adversely affected disposable income growth.

According to the study, every major city and town analysed — in the North and the South — saw a drop in gross disposable income growth per capita when compared to 1998–2010 levels. It estimates that had wages and productivity growth continued to increase in line with pre-2010 levels, people in  Burnley, Lancashire, would be £28,000 better off, Cambridge and Milton Keynes £21,000, London £13,590, Middlesbrough (£13,200), and Cardiff £13,080. Instead, the reverse is true.

The study also highlights how the decline in national productivity growth — a fundamental catalyst for increasing wages—is inextricably linked to the reduction in gross disposable income. Between 1998 and 2010, national productivity growth was around 1.5% per annum, while gross disposable household income growth rates were 1.4% per annum (or £3,300 in real terms compared to 2022 figures). Between 2010 and 2021, productivity growth fell to around 0.6%, while gross disposable household income saw an annual increase of just 0.7%, which, when compared to pre-2010 figures, means UK households were on average £1,500 worse off per year.

Andrew Carter, Chief Executive of Centre for Cities, stated: “The UK has had a torrid time since the Great Recession. Everywhere, up and down the country, including areas that were doing relatively well before, has been levelled down because of the lack of growth. To achieve growth in all areas, the next Government must act at a radically different pace and scale and commence a multi-decade policy programme.”

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