A new study has revealed how people in East Lancashire are thousands of pounds worse off now than they were in 2010.

The Centre for Cities' study shows the average person in the North West has missed out on £12,230 in disposable income when compared with predictions based on 2010 trends.

The study looked at gross household disposable income per head, and compared the current figure to what it would have been if economic growth had continued at the rate between 1998 and 2010.

It found that in Burnley, compared with 2010 trends residents in the town are £28,090 worse off when it comes to disposable income, while the figure in Blackburn is £9,470.

Burnley is the second worst hit area in the country, behind only Aberdeen where people are a whopping £45,242 worse off. Glasgow ranked third at £23,501 worse off, with Milton Keynes fourth (£21,612) and Cambridge fifth, where people are on average £21,338 worse off.

The Centre for Cities said while it found more jobs have been created since 2010, productivity growth - a key driver of wages - has declined in most places, meaning some places are less productive now than they were in 2010.

The rising costs of housing and household bills also mean people have less spare cash to spend on leisure activities, as have rates of poverty. 

In 2010, there were no areas in the country where a third of children lived in poverty. Now there are six areas, and Blackburn and Burnley are two of them.

Kate Hollern, Labour MP for Blackburn, said: "As economic stagnation spirals out of control, its effects can be felt throughout the UK.

"This damning report from Centre for Cities once again confirms Blackburn is one of the many places that continues to be left behind.

"The research emphasises that disposable incomes in London were close to double what they were in Blackburn. Stagnation of disposable incomes corresponds with an increase in relative poverty.

"Blackburn has seen a 6.3 per cent increase in the proportion of children living in relative poverty from 2014 to 2021. We are seeing a clear and unjustified decline in people’s standard of living.

"Blackburn is now also one of six UK locations in the report where over a third of children are in households in relative poverty. In 2014, there were none. This is simply unacceptable.

"Blackburn has been hit particularly hard by the successive decisions made by the current Government since it came to power in 2010.

"For example, the slashing of public spending and VAT increases are some of the disparaging policy choices that have set the scene for more than a decade of weak economic performance.

"In recent times, skyrocketing inflation has resulted in wages failing to keep pace and leaving pay to lag extremely far behind inflation.

"The continued mismanagement of the economy by the Tories has exacerbated the impact of soaring costs even further.

"So, as long as the UK economy continues to flat-line, it remains significantly ill prepared for future economic shocks.

"A future Labour Government will face significant challenges as a result of the current Conservative Government’s weak economic record.

"Historically, the Conservatives have claimed they are a safe pair of hands with our economy – these new figures destroy that myth."

Across the 63 urban areas included in the Centre for Cities research, just seven had positive figures for disposable income growth since 2010, with Derby performing best where people have £2,113 more.

At a national level, people have been left with £10,200 less to spend or save on average since 2010 than if the economy had grown at pre-2010 trends.

Andrew Carter, chief executive of Centre for Cities, said: “Both the two main political parties have pledged to grow the economy and the general election debate will have growth at its heart.

"The challenge for the next Government is to go beyond the rhetoric and to do what’s needed to make this rhetoric a reality.

“The UK has had a torrid time since the Great Recession. Everywhere, up and down the country, including places that were doing relatively well before, has been levelled down because of the lack of growth.

"To get growth in every place, the next Government needs to act at a radically different pace and scale, and mark the beginning of a multi-decade policy programme.

“The first step in a realistic approach to grow the economy is to recognise that the British economy is an urban economy.

"Cities account for nine per cent of the land and over 60 per cent of the economy, as well as 72 per cent of high skilled jobs.

"Their slowdown is at the heart of why the national economy is struggling. There is no plausible way of achieving higher growth without increasing the innovation and dynamism of urban Britain.

“This means reforming the planning system to enable cities to grow, devolving more powers and financial freedoms to encourage our big cities to make decisions that support growth, and following the levelling up rhetoric with bold actions.”

Burnley Council has been contacted for comment.