Devolution’s Economic Dividends Postponed

At the IED annual conference, Prof Kevin Morgan, a long time promoter of devolution (at different scales), concluded that not only had it not produced the intended economic development benefits, but that in Wales the effects might have been negative.

Further, Tony Jackson’s analysis of regional GVA per capita strongly evidenced that it was an inappropriate and possibly meaningless target for local economic development, a concern also raised by Alf Young at the EDAS annual conference where he suggested governments need to pursue a wider range of more realistic and relevant targets, the equivalent of the private sectors Balanced Scorecard.

Meanwhile, planned devolution of regeneration and business gateway functions seems to be incomplete in both Scotland and England at exactly the time in the economic cycle when it is most needed and while LAA/MAAs and SOAs between central and local government continue to evolve.

So has the UK managed to combine real economic decline and uncertainties with institutional responsibility uncertainties just when businesses and communities need most help, and could this postpone any benefits of devolution further?