The financial settlement has been described as the key to devolution. Public spending above tax in Scotland and Wales has been criticized. Public spending is above tax in seven UK regions, including four English regions. If we treat equal citizens equally, public spending will be above tax in poorer regions. There is nothing extraordinary about spending above tax, but there are important questions with regard to regional levels of expenditure. In four regions (London, South East, Scotland and Northern Ireland) public expenditure is well above the level expected for their degree of prosperity. This article provides possible explanations.Devolution, Public Spending, Automatic Stabilizers, Equity,
MACKAY R. R. (2003) Twenty-five years of regional development , Reg. Studies 37 , 303-317. Up to the mid 1970s there was a trend towards greater regional equality in the distribution of income and wealth in the UK. However, over the last 25 years regional inequality has increased, as have other forms of inequality. Growing inequality has been associated with a more difficult labour market. The growing gap between a prosperous Inner Region Core and the rest of the UK is disguised in the unemployment statistics because of a powerful discouraged worker effect in the less prosperous regions. This paper seeks to explore why regional convergence has been replaced by divergence and argues that if spatial imbalances continue, then they are likely to add to inflationary pressures in the UK that may be detrimental to the growth of national output. MACKAY R. R. (2003) Vingt-cinq annees d' amenagement du territoire, Reg. Studies 37 , 303-317. Jusqu'au milieu des annees 1970, la tendance etait a un meilleur equilibre regional dans la distribution des revenus et de la richesse au Royaume-Uni. Toujours est-il que, sur les vingt-cinq dernieres anne es, l'ecart regional s'est creuse, parmi d' autres formes d'inegalite. Le creusement des inegalites s'est rapporte a un marche du travail plus tendu. Dans les chiffres du chomage, le creusement de l'ecart entre un noyau regional riche et le reste du Royaume-Uni est moins clair a cause d'un effet travailleur decourage important dans les regions defavorisees. Cet article cherche a e tudier pourquoi la notion de convergence regionale s'est vu remplacee par la notion de divergence regionale, et affirme que, si les de sequilibres regionaux persistent, ils risqueront d'augmenter la pression inflationniste au Royaume-Uni, ce qui pourrait etre nuisible a la croissance du produit national. MACKAY R. R. (2003) Funfundzwanzig Jahre regionaler Entwicklung, Reg. Studies 37 , 303-317. Bis zur Mitte der siebziger Jahre gab es eine Tendenz zu verstarkter regionaler Uniformitat der Verteilung von Einkommen und Wohlstand im Vereinigten Konigreich. In den letzten 25 Jahren jedoch haben regionale wie auch andere Formen der Ungleichheit zugenommen. Zunehmende Ungleichheit wird nit Problemen auf dem Arbeitsmarkt in Zusammenhang gebracht. Die zunehmende Kluft zwischen einem florierenden Kern in den Binnenregionen und dem Rest des Landes erscheint in den Erwerbslosenstatistiken weniger scharf profiliert wegen der durchschlagenden Wirkung der Entmutigung in der arbeitenden Bevolkerung der weniger reichen Regionen. Dieser Aufsatz beabsichtigt, zu untersuchen, warum regionale Konvergenz einer Divergenz gewichen ist, und behauptet, dass ein Anhalten der raumlichen Unausgewogenheit wahrscheinlich zu Inflationsdruck im Vereinigten Konigreich beitragt, der dem Gesamtausstoss des Landes nachtraglich sein konnte.Regional Inequality, Macro Economy, Regional Policy,
MacKay R. R. and Williams J. (2005) Thinking about need: public spending on the regions, Regional Studies 39 , 815–828. The UK Treasury accepts that need is the correct guide to spending on public services in different parts of the UK. But the formula used to decide changes in devolved spending in Scotland, Wales and Northern Ireland depends on the population: it does not compensate for differences in need. With devolved spending determined by need, there would be consistency across 11 of the 12 UK regions. London would be the sole exception. The heavy cost of the capital's public services is part of the argument for a more even distribution of income, wealth and employment.Automatic stabilizers, Need, National solidarity, Devolved spending, London paradox, Stabilisateurs automatiques, Besoin, Solidarité, Dépense régionalisée, Paradoxe de Londres, Automatische Stabilisatoren, Bedürftigkeit, überregionale Solidarität, dezentralisierte Ausgaben, das Paradox London, Estabilizadores automáticos, Necesidad, Solidaridad nacional, Gastos descentralizados, Paradoja londinense, JEL classifications: R1, R5, H2, H7,
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
customersupport@researchsolutions.com
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Copyright © 2025 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.