The latest UK budget has placed increasing financial pressure on individuals and businesses, forcing many to reconsider their living and working situations. Rising taxes, higher employer costs, and stagnant wages have made it even more difficult for people to afford life in expensive regions, prompting a growing number to explore relocation to more affordable areas. This shift is reshaping population trends across the UK, creating both challenges and opportunities for local councils looking to attract and retain residents.
Recent fiscal policies, particularly the increase in employer National Insurance Contributions (NICs) from 13.8% to 15% and the reduction of the earnings threshold from £9,100 to £5,000 have placed growing financial pressure on businesses and individuals across the UK. These changes are expected to generate between £23.8 billion and £25.7 billion annually for public services, including the NHS, but have also led to significant economic strain.
For businesses, the higher NICs, equivalent to one million full-time jobs, have increased operational costs, forcing many to consider workforce reductions or slower recruitment. A survey by the Chartered Institute of Personnel and Development (CIPD) found that one in four employers plan to cut jobs or freeze hiring, with over a third expecting to raise prices to offset the financial burden. These pressures, combined with rising living costs, have made it increasingly difficult for individuals and families to afford to stay in high-cost areas.
As a result, ONS data reveals a growing migration trend, with people moving to more affordable towns and cities in search of lower living costs and better economic stability. Cities such as Cambridge, Peterborough, Manchester, Northampton, Glasgow, and Swindon have seen significant population growth* due to their more accessible housing markets, job opportunities, and overall affordability.
For councils and local authorities, this shift presents both challenges and opportunities. Place Informatics’ advanced data analytics can provide critical insights into migration patterns, demographics, and income levels, helping towns attract and retain new residents effectively. By gaining insights into their own demographics—including where new residents are coming from, their age profiles, and financial situations—towns can effectively promote their unique advantages whilst developing targeted strategies for housing, infrastructure, and economic growth.
With data-driven insights, towns can make informed decisions to position themselves as attractive destinations for those seeking affordability and stability, ensuring sustainable growth and long-term community development.
