Major Scottish cities have significantly underperformed the rest of the UK in real-terms disposable income growth over the past decade, according to a recent report by the Centre for Cities. The “Cities Outlook 2026” analysis reveals that residents in Glasgow, Edinburgh, Dundee, and particularly Aberdeen, have experienced a decline in living standards between 2013 and 2023.
The research highlighted that Aberdeen suffered the most substantial fall, with real-terms disposable income plummeting by 18.8% over the ten-year period. Glasgow saw a decrease of 2.3%, Edinburgh a 2.6% reduction, and Dundee experienced a 3% decline.
In stark contrast, UK cities collectively recorded an average increase of 2.4% in disposable income over the same decade. Brighton led this growth with an 8.1% rise, followed by Worthing at 7.8% and London at 5.8%. Other high-performing cities included Barnsley, Bristol, and Doncaster.
The Centre for Cities report suggests that had Scotland’s cities matched the performance of these top-tier locations, residents would have, on average, seen an additional £12,300 per person in their disposable income over the decade to 2023. For Aberdeen, this figure would have been considerably higher, at an estimated £34,700 per person.
The think tank, whose mission is “to help the UK’s largest cities and towns realise their economic potential”, noted that “living standards growth in urban Britain has not recovered” since the 2008 financial crisis, with “annual increases in disposable incomes for most places have hovered around zero.”
Andrew Carter, Chief Executive of the Centre for Cities, emphasised the fundamental role of economic expansion. “Ultimately it is stronger economic growth that raises household incomes,” he stated, adding that “cost-of-living fixes” implemented by governments “can only ever be temporary.”
Commenting on the UK-wide situation, Mr Carter observed: “The last decade has delivered the same amount of growth in living standards as we typically experienced in a single year prior to 2008.”
He further noted that 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.”
Responding to the findings, Scotland’s Deputy First Minister, Kate Forbes, acknowledged the report’s highlighting of the UK’s modest 2.4% increase in disposable incomes over the ten-year period. She attributed this to “UK economic policy and the economic damage caused by EU exit.”
Ms Forbes asserted that “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.”
She also outlined government initiatives to stimulate growth, including a competitive non-domestic rates relief package valued at an estimated £864 million in the draft Budget for 2026-27, which includes “the most generous small business rates relief in the UK.”
Additionally, she indicated plans for post-election legislation to grant “enhanced powers for regional partnerships, including Aberdeen City and Aberdeenshire, to support and grow regional economies.”
