One city sees huge decline in survey of disposable income in Scotland

A "poor performance" in living standards has resulted in disposable income falling in Scotland's major citiesplaceholder image
A "poor performance" in living standards has resulted in disposable income falling in Scotland's major cities

Scottish cities "trailed the rest of the country, experiencing real-terms declines”

A "poor performance" in living standards has resulted in disposable income falling in Scotland's major cities, a report has found.

Research by the Centre for Cities said Glasgow , Edinburgh , Dundee and Aberdeen all saw a decline in disposable income over the decade since 2013 - with real-terms disposable income in Aberdeen falling almost a fifth (18.8%).

The Cities Outlook 2026 report found that had cities in Scotland experienced the same growth in real-terms disposable income as the top performing cities, residents would have pocketed an extra £12,300 per person on average in the 10 years to 2023.

In Aberdeen , residents would have pocketed an extra £34,700 over the decade if the city had matched top-performing places - which include Brighton , Worthing, and London , as well as Barnsley , Bristol and Doncaster .

They are amongst the 11 UK cities to record above-average disposable income growth per person over the period 2013 to 2023, the Centre for Cities found.

Its latest report said "living standards growth in urban Britain has not recovered" since the financial crisis of 2008, adding: "Annual increases in disposable incomes for most places have hovered around zero."

Across the UK as a whole, cities saw disposable income increase 2.4% over the decade.

Brighton recorded the highest growth, with disposable income up 8.1% - putting it ahead of nearby Worthing (7.8% growth), and London (5.8%).

Scottish cities "trailed the rest of the country, experiencing real-terms declines in living standards since 2013", the Centre for Cities said.

In Scotland's largest city of Glasgow , disposable income growth was minus 2.3% over the decade, putting it ahead of Edinburgh and Dundee - which saw growth of minus 2.6% and minus 3% respectively, while in Aberdeen it was minus 18.8%.

The think tank - which says its "mission" is to "help the UK's largest cities and towns realise their economic potential" - added that Glasgow , Edinburgh and Dundee had all "experienced poor performance on real-terms living standards since 2013".

It also highlighted that " Aberdeen experienced a steeper decline than any other large UK city or town".

Andrew Carter , chief executive of Centre for Cities , said "ultimately it is stronger economic growth that raises household incomes", adding "cost-of-living fixes" from governments "can only ever be temporary".

For the UK as a whole, he said: "The last decade has delivered the same amount of growth in living standards as we typically experienced in a single year prior to 2008.

"In places like Warrington and Barnsley , economic growth has translated into higher household incomes and less deprivation. That isn't accidental - it is shaped by policy choices on skills, transport, housing, and support for businesses."

Deputy First Minister Kate Forbes said: "The report highlights disposable incomes increased by just 2.4% in the UK over the 10-year period to 2023.

"This reflects UK economic policy and the economic damage caused by EU exit. Scotland and its cities remain among the best performing in the UK in terms of inward investment and economic performance, but we need the full levers of independence to ensure we reach our full potential.

"To drive economic growth across Scotland , our draft Budget for 2026-27 sets out a competitive non-domestic rates relief package worth an estimated £864 million. This includes the most generous small business rates relief in the UK.

"We also intend to bring forward legislation after the election to provide enhanced powers for regional partnerships, including Aberdeen City and Aberdeenshire , to support and grow regional economies."

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