Scotland has risen from fifth to second in PwC’s ‘Good Growth Barometer’ report on a “broader measure” of household prosperity and household spending power across the UK.

PwC said its report “provides one of the clearest pictures yet of prosperity across the UK.”

The report said Scotland has gross household income 5.5% below the UK average, but lower housing costs and smaller households more than offset this, leaving household spending in Scotland above the UK average.

Within Scotland, PwC said East Dumbartonshire has the highest household spending power at £31,384.

“London ranks second for household spending power but seventh on a broader measure of prosperity, while Scotland rises from fifth to second …” said PwC.

“London has the strongest gross household income position at £68,856, 20.4% above the national average of £57,192,” said PxC.

“However, London’s higher housing costs and larger households narrow that advantage and reduce household spending power after tax by £43,602 (63%) to £25,254 per year, only 8.1% above the national average of £23,376, or £1,883 more per year.

“In the South West and Scotland, lower housing costs and smaller household sizes boost spending power above what gross income alone might suggest.

“In the South West, gross household income is only 1.1% above the UK average, but spending power is 3.8% above average, an extra £892 a year.

“Scotland starts with gross household income 5.5% below the UK average, but lower housing costs and smaller households more than offset this, leaving spending power 0.8% above average, or £175 more a year.

“The report also measures non-financial factors affecting quality of life across the UK, based on approximately 50 local indicators that include access to healthcare, green space, housing, and safety.

“When combined with regional household spending power, the findings broadly reinforce the North-South divide.

“However, London drops from second to seventh place in the rankings of UK regions and nations, while Scotland rises from fifth to second.

“London’s positioning is particularly impacted by measures including financial vulnerability, housing pressures, safety, social connectivity and environmental conditions.”

Rachel Taylor, Government and Health Industries Leader at PwC UK, said: “The research shows just how differently prosperity is experienced across the UK, with stark variations not only between regions but on each other’s doorstep.

“The better we understand what drives those differences, the more precisely we can tackle them. Delivering good growth in every postcode will require local leaders to have the flexibility to focus resources where they can make the biggest difference …

“Our research shows how widespread the opportunity is to strengthen the link between economic progress and everyday life.

“Poorer mental and physical health, financial insecurity and housing pressures often weigh on lower-performing places, while stronger health outcomes and greater financial resilience support better performance elsewhere.

“The opportunity now is making growth count by ensuring it is not only generated in more places, but felt by more people.”