Aberdeen has experienced the most significant fall in real-terms disposable income of any major UK city over the past decade, according to the latest Cities Outlook 2026 report from the Centre for Cities think tank. The analysis highlights a substantial economic downturn for residents of the Granite City, as well as a broader trend of declining living standards across Scottish urban centres.
Between 2013 and 2023, real-terms disposable income in Aberdeen plummeted by 18.8%. This stark decline positions Aberdeen with the steepest reduction among large UK cities. The report further estimates that individuals in Aberdeen would have accumulated an additional £34,700 each over the decade if their income growth had mirrored that of the UK’s most economically robust cities.
The Centre for Cities report indicates that Scottish cities collectively are “trailing the rest of the country, experiencing real-terms declines in living standards since 2013”.
Beyond Aberdeen, Glasgow saw a 2.3% decrease in disposable income, while Edinburgh and Dundee each registered a 2.6% decline over the same ten-year period. In contrast, the average increase across all UK cities stood at 2.4% during this time.
Nationally, the report notes a pervasive stagnation in urban living standards, asserting that “living standards growth in urban Britain has not recovered” since the 2008 financial crisis. For most areas, “Annual increases in disposable incomes… have hovered around zero.”
Andrew Carter, Chief Executive of the Centre for Cities, emphasised the fundamental link between economic growth and household prosperity. “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.”
Responding to the report’s findings, Scotland’s Deputy First Minister, Kate Forbes, attributed the national trend to broader economic factors. “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,” Ms Forbes commented.
The Deputy First Minister also highlighted the Scottish Government’s efforts to stimulate economic growth. She noted: “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.”
