Brits have been made worse off by up to £45,000 since 2010 due to the ‘flattening’ of the UK economy, according to new research.think tank city center has released a new report that analyzes the differences in average disposable income in the nation’s 63 largest cities.
Nationally, households have spent an average of £10,200 less since the end of the Great Recession. Aberdeen residents have been hit hardest, with the average person found to be £45,200 short.
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The Center for Cities report analyzes how much people’s disposable income has been lost since 2010.
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Burnley households followed suit. Glasgow have lost on average the equivalent of £28,090 and £23,500 respectively over the past decade and a half.
People living in Cambridge and Milton Keynes would be £21,000 richer on average if their incomes had risen compared to pre-2010 levels.
Only seven UK cities saw growth in disposable income exceed the pre-crash trend between 2007 and 2009.
According to the Center for Cities in Cities Outlook report, this shortfall is primarily due to a lack of productivity growth within the UK economy, despite the UK’s continued employment boom since 2010.
All city averages are cumulative relative to 2022 prices. Here’s a breakdown of the UK cities that would have recorded the biggest losses in per capita disposable income if their urban economies grew at their 1998-2010 rates:
- Aberdeen – loss of £45,240
- Burnley – loss of £28,090
- Glasgow – £23,500 loss
- Milton Keynes – loss of £21,610
- Cambridge – loss of £21,340
- Dundee – loss of £17,730
- Birkenhead – loss of £17,540
- Ipswich – loss of £17,390
- Exeter – loss of £16,990
- Plymouth – loss of £16,340.
Andrew Carter, CEO of the Center for Cities, highlighted that both the Conservatives and Labor are committed to economic growth at the next general election.
“The challenge for the next government is to move beyond the rhetoric and do what it takes to turn this rhetoric into reality,” he said.
The UK has had a tough time since the Great Recession. Everywhere up and down the country, including places that used to do relatively well, we’re flattening because of a lack of growth.
“To achieve growth everywhere, the next government will need to act at a fundamentally different pace and scale, marking the beginning of a multi-decade policy program.”
Disposable income has fallen significantly since 2010, according to think tank
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Since 2010, employment has increased in all but two cities, resulting in more people getting jobs in nearly all cities. In relative terms, London leads the pack with an almost 30% increase in overall employment numbers, which equates to 1.4 million roles.
However, productivity growth has been low in almost all UK cities, making it a key determinant of wage growth. Some 18 cities were less productive in 2021 compared to 2010.
The report also highlighted that housing costs are rising in most regions, making property increasingly unaffordable, particularly in the Greater South East, and impacting disposable income.
Furthermore, the proportion of children living in relative poverty is increasing in nearly every city, and the proportion of young people living in relative poverty in working households is also rapidly increasing.
GB News has contacted the Treasury for comment.