A groundbreaking report from the Centre for Cities thinktank has unveiled a remarkable economic success story across eleven UK towns and cities, with Warrington emerging as the standout performer. These locations have achieved disposable income growth rates that are twice as fast as the rest of the United Kingdom over the past decade, highlighting a significant divergence in regional prosperity.
Striking Disparities in Economic Performance
The study, which analysed data from 2013 to 2023, found that residents in these top-performing areas experienced an average increase in disposable income of 5.2%. This impressive figure starkly contrasts with the much more modest 2.4% growth observed across urban areas nationwide. The research suggests that if all 63 of the UK's largest towns and cities had matched this accelerated growth trajectory, individuals would have benefited from an additional £3,200 in their pockets on average.
The Winning Formula: High-Skilled Jobs and Tradeable Industries
What sets these eleven successful locations apart? The report identifies a clear pattern: they have all strategically focused on cultivating a robust local business environment and creating higher-skilled employment opportunities. A common thread is the presence of a significant number of productive firms operating in tradeable industries—sectors like software development, marketing, and finance that can sell their goods and services beyond local boundaries.
Andrew Carter, Chief Executive of the Centre for Cities, emphasised this deliberate approach. "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 in Strategic Success
The report provides compelling examples of how targeted interventions have driven this growth. In Barnsley, the council has capitalised on its prime location along the M1 corridor to transform the town into a major logistics hub. By opening up industrial land around motorway junctions, the area has fostered significant business expansion. Since 2015, Barnsley has added 6,000 new private sector jobs, with a full third of these being high-skilled positions. Disposable income in the town rose by 5.6% over the decade.
Warrington, however, stands as the unequivocal champion of economic expansion. The Cheshire town recorded the highest total economic growth among all locations studied, at an astonishing 41%. Since 2013, both its economic output and disposable income growth have been 2.2 times the national average. Warrington now boasts the highest disposable income in northern England and is the only city in that region where workplace wages exceed the UK average.
The Price of Inaction and Policy Critique
While celebrating these successes, the thinktank issued a stark warning about the consequences of inadequate economic strategies. The report criticises both central and local governments for often prioritising short-term, piecemeal measures to alleviate cost-of-living pressures—such as capping bus fares or providing energy bill support—over fundamental policies designed to stimulate sustainable economic growth.
"By focusing on tinkering with the symptoms, the government runs the risk of losing sight of the cause," the report argues. "The problem underpinning cost of living pressures, stagnant incomes, and persistent deprivation is the lack of economic growth."
This critique is underscored by the contrasting fortunes of other cities. Cambridge, for instance, saw a real-terms decline in disposable income of 3% since 2013, with residents spending an average of 17% of their outgoings on housing. The report calculates that had Cambridge matched the growth of the top eleven performers, its residents would have gained an extra £10,900 over the decade.
Regional Highlights and the Path Forward
Beyond Warrington and Barnsley, other areas featured in the top eleven include Wakefield. The collective economic growth for these high-performing locations was 27% over the decade, significantly outpacing the 18.4% average for urban areas. Brighton led in disposable income growth with an 8.1% rise, followed by Worthing at 7.8% and London at 5.8%.
Carter pointed to the difficult decisions required to replicate this success. Regarding Warrington's achievements, he noted: "It's about taking tough decisions. 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. So it's about: do you know what needs to be done, but also, are you willing to do it?"
The report concludes that the proven formula for prosperity involves a steadfast commitment to building local economic capacity through high-value industries and skilled employment, rather than relying on temporary financial relief measures. This approach, as demonstrated by the eleven standout towns and cities, offers a blueprint for addressing the UK's broader challenges of income stagnation and regional inequality.
