An expert has explained the truth behind Nottingham being labelled the UK's poorest place. The Office for National Statistics (ONS) recently ranked the whole of the UK based on gross disposable household income (GDHI), the amount of money households have after paying tax and receiving benefits, with Nottingham coming at the bottom of the list.
In comparison to the UK average of £21,440, Nottingham had the lowest GDHI per head at £13,952. In response, the city council said the data painted a "skewed" picture, due to the high number of students not earning and tight boundaries excluding wealthy pensioners in suburbs like West Bridgford.
But William Rossiter, associate professor at Nottingham Business School, explained that although the government data was affected by these factors, it was still a useful way to understand the city's economic problems. "The commuting patterns do affect this sort of statistic, but that doesn't mean it is not telling you something important, which I think it is," Mr Rossiter said.
Read more: Nottingham named poorest place in the country
"The council does have a point that clearly there are some fairly affluent suburban areas outside of the city limits, and that will be affecting the statistics for the city both in a good and bad way. There are other statistics that will see Nottingham looking more positive, GDHI is very much a household measure, but if you look at measures of economic performance that are based on workplaces rather than where they live, you will generally get a more positive picture.
"Over half the city's workforce live outside the boundaries, and they commute into work and produce all this output and that actually makes the city look quite good. The reason I think this data is interesting and important, is because it shows that if you are a resident of the city of Nottingham, your economic well-being is going to compare pretty poorly with people living elsewhere."
Mr Rossiter outlined his view that the city was afflicted by a lack of accessible opportunities for poorer communities and economic inactivity. He also cited the decline of manufacturing in the city, which had provided quality opportunities that were not dependent on higher education.
"More fundamentally it points to an issue for the city, which is that although there are some great economic opportunities here they are not as accessible for some of the most deprived communities. There are some great things going on in the NG2 business park and BioCity, with fantastic high-quality employment created, but the question is if you are a local resident without a degree what opportunities are there for you?
"The other thing I'm mindful of is the possible link between lower levels of household income and economic activity, which we have seen a very significant rise in after Covid. So we need to be thinking of how we can better connect those households with economic opportunities on their doorstep.
"If you work in Nottingham but live somewhere else, chances are you're going to be better off than those who live and work in the city. We need to create more quality jobs that are accessible to Nottingham residents, and this is where we are dealing with some of the long-term consequences of the loss of manufacturing, because historically big manufacturing associated with places like Raleigh and Boots tended to provide high-quality employment for people without higher level qualifications."
In St Ann's, one of Nottingham's most deprived areas, locals recognised a decline in opportunities but disagreed on whether the ranking was representative of life in the city. Shona Mooney, 58, from St Ann's, said: "I'm not surprised it is so low, because you have some areas like St Ann's that are being left behind. It feels like it is harder to get work and get opportunities, like we are ignored.
"Back in the past Nottingham was brilliant, but we've lost a lot of factories and work. Old people are getting left behind, and there are no community resources for younger people."
Garry Birteley, 46, who was born in St Ann's but lives in Sneinton, said: "I understand the students would bring it down, but it is really surprising.
"I would have thought a lot of places would be worse off. I would have thought Nottingham would be a middle of the pack city.
"We do have deprived parts so I believe the figures, but I would think every city or place would be the same. I have travelled all over the world and when I say Nottingham people don't say 'oh is that the poor place'."
Carol Sands, 53, from St Ann's, added: "I think people in the city need more help from the government. People are really struggling now if they're on lower wages.
"There are parts of the city that are much poorer than others. It is surprising that people that work are needing more help now because their wages aren't enough."
Two of Nottingham's MPs expressed concerns over the possible connotations of the data, even with the caveats highlighted by the city council. Nadia Whittome, Labour MP for Nottingham East, said: “The fact that Nottingham has a high student population and tightly drawn boundaries skews the data on disposable income, but it is undeniable that there are large numbers of people in our city who are struggling to make ends meet.
“Since this data was gathered, the cost-of-living crisis has erupted. Low levels of disposable income make people more vulnerable to inflation, so the government’s failure to tackle rising bills and food prices will be having a particularly devastating impact on many people in Nottingham.”
Lilian Greenwood, Labour MP for Nottingham South, attributed Nottingham and the wider country's economic problems to "13 years of Conservative mismanagement". She added: "I am concerned by the findings from the ONS that household disposable income in our city in 2020 was significantly below – the already declining – national average. Despite the Covid pandemic creating some unusual movement in incomes, the costs of 13 years of Conservative mismanagement of our economy and our public services are clear to see across our city today.
"The whole country is suffering; with the IMF warning that Britain will be the only G7 economy to shrink in 2023 because of higher energy prices, rising mortgage costs and increased taxes following the Tories crashing our economy last year. I know that many of my hard-working constituents are deeply worried about how they will be able to afford to heat their homes and feed their families this winter and particularly when the Energy Price Guarantee rises to £3,000 per year in April.
"That is why I support Labour’s proposal to expand the windfall tax on the energy producers - who could make £170 billion in unexpected profits over the next two years - and use the cash raised to support those who are struggling. Labour’s ‘Warm Homes Plan’ would also see many families in Nottingham saving £1,000 every year by insulating their homes."
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