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Regional Taxing and Spending: The Search for Balance

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  • R. Ross Mackay

Abstract

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.

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  • R. Ross Mackay, 2001. "Regional Taxing and Spending: The Search for Balance," Regional Studies, Taylor & Francis Journals, vol. 35(6), pages 563-575.
    • Handle: RePEc:taf:regstd:v:35:y:2001:i:6:p:563-575
    DOI: 10.1080/00343400120065723
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    14. Peter Gripaios, 2002. "Regional Spending: A Comment on MacKay," Regional Studies, Taylor & Francis Journals, vol. 36(6), pages 685-689.
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    16. Cristiano Cantore & Paul Levine & Giovanni Melina, 2014. "A Fiscal Stimulus and Jobless Recovery," Scandinavian Journal of Economics, Wiley Blackwell, vol. 116(3), pages 669-701, July.
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