London accounted for half of the 10 worst performing areas for growth in disposable income over the last five years, according to new research released today, which blamed rising housing costs and lower City bonuses in part for the slowdown.
Camden and City of London were the only areas in the UK to have experienced a drop between 2009 and 2013, accounting firm UHY Hacker Young’s most recent findings show, falling 1.3 per cent and 0.1 per cent respectively.
But despite coming last in the rankings, households in Camden and the City of London were also among the most well-off, with £37,324 to spend or save after taxes and mortgages or rent in 2013 compared with £37,360 in 2009.
Also lagging behind were Barking & Dagenham,Havering, Bexley, Greenwich and Enfield, which all reported growth of just four per cent or under.
Households in Barking, Dagenham and Havering have more than half the discretionary spend of Camden and the City at £16,801 compared with £16,173 in 2009.
“The decline in City bonuses in recent years and increases in housing costs are major drivers in the slow growth rate in disposable income across London.”
“While some areas of the capital have experienced slower than expected growth, disposable income has actually decreased in others over the last five years,” UHY Hacker Young partner Elliott Buss said.
In contrast, the best performing UK area was West Cumbria, which record a 17 per cent rise over the five years to £16,603. Wales was home to three of the top performing areas, with Powys in second place followed by Flintshire and Wrexham and South West Wales in third and fifth.
UHY Hacker Young said investment from manufacturers including Airbus, which has a site in Flintshire, and Toyota had helped drive growth in recent years.
“The Welsh manufacturing sector has grown from strength to strength and the subsequent rise in disposable income this has provoked ensures those areas of Wales worst affected by the recession have received a much needed boost,” Buss said.
Meanwhile Bromley and Lewisham and Southwark enjoyed the strongest growth out of the London areas, up 14.2 to £22,021 and 13.1 per cent to £19,595 over the period respectively.