New data shows Ipswich residents have one of the lowest disposable incomes in the East of England

The big picture: GDHI in Ipswich has grown by an average of 3.1% annually since 1997, matching the national rate. However, between 2021 and 2022, Ipswich's 4.1% growth fell below the 7.9% CPIH inflation rate.

How Ipswich compares: Ipswich remains one of the lowest-income local authorities in the region, with an average disposable income of £18,240 per head – 23% lower than the East of England average of £23,661 per head and 20% lower than the national average. Only Luton has a lower disposable income in the East of England.

Understanding the data: Gross disposable household income (GDHI) is the amount of money that everyone in the household sector has available for spending or saving after they have paid direct and indirect taxes and received any direct benefits.

It does not include any expenses such as rent, utilities, food and drink.

GDHI is a concept that reflects the “material welfare” of the household sector. The household sector includes residents of traditional households and those living in communal establishments. GDHI also includes the business income of self-employed people.

Gross disposable household income by East of England local authority per head of population at current basic prices

Why it matters: Disposable income reflects economic welfare and spending power. Lower levels can indicate financial strain on residents and the local economy. A leading think tank warns that inflation "has made us poorer" and calls for greater investment in local authorities.

What they're saying: Benedikt Stranak, researcher at the New Economics Foundation, said: "Despite promises of 'levelling up', year after year we see the same old pattern – disproportionate public investment in London, and very little in other parts of the country."

He added: "The damage caused is immense. More people are being forced to rely on food banks, and the lack of economic security is fostering a climate where racism and hatred can thrive, as evidenced by recent far-right riots."

A Treasury spokesperson responded: "We inherited an economy that has barely grown these past 14 years which has impacted people's living standards. The only way to achieve sustainable growth is by fixing the foundations so we can rebuild this country and deliver a Britain that is better off."

The bottom line: As Ipswich grapples with lower disposable income levels, calls for targeted investment and support for the local economy are growing louder.

Sources

• Regional gross disposable household income, UK: 1997 to 2022