A recent study reveals a striking disparity in disposable income growth across the UK. Eleven towns and cities, including Warrington, Barnsley, and Wakefield, have experienced a remarkable surge in disposable income, rising twice as fast as the national average over the past decade. This phenomenon is attributed to their strategic focus on fostering a robust local business ecosystem and creating high-skilled job opportunities. These top-performing areas have a significant number of businesses in 'tradeable' industries like software, marketing, and finance, enabling them to cater to markets beyond their local boundaries. The report emphasizes the importance of economic growth policies, rather than piecemeal measures to address the cost of living, as advocated by central and local governments. It highlights the risk of governments concentrating on temporary solutions, potentially overlooking the root cause of economic challenges. Andrew Carter, the thinktank's CEO, underscores the significance of these top performers' commitment to higher-skilled, cutting-edge jobs, which is a key driver of their success. Barnsley, for instance, has strategically utilized its M1 corridor location to establish itself as a logistics hub, attracting businesses and creating jobs. The town has seen a 5.6% rise in disposable income since 2013, with a focus on private service jobs, including a substantial number of high-skilled positions. Similarly, Warrington has achieved a 5.3% increase in disposable income, making it the city with the highest disposable income in northern England and the only city in the region with wages above the UK average. The study also highlights the contrast between these thriving towns and cities and struggling areas like Cambridge, where real-terms disposable incomes have declined by 3% since 2013. The report suggests that Cambridge residents could have enjoyed an additional £10,900 in disposable income if their city had matched the growth of the top 11 performers. The key to success, according to Carter, lies in making tough decisions, such as enabling business park expansions and developing housing in green belt areas, which are essential for sustainable economic growth.
