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The Regional Dimension of Public Expenditure in England

Author

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  • David Heald
  • John Short

Abstract

Public expenditure in the UK has a location dimension with respect to the devolved arrangements for Scotland, Wales and Northern Ireland. There is no location dimension to the allocation of public expenditure to the regions of England. Nevertheless, whether planned or not, public expenditure impacts on the regions through the provision of services and associated employment and income generation. This paper examines the methodological issues in assigning public expenditure to countries and regions, and reviews existing and past patterns of public expenditure in English regions. It then considers the relevance of this analysis to policy options for introducing an explicit regional dimension to the public expenditure allocation mechanism in England. Paradoxically, English regional devolution is potentially more radical in its implications, in terms of rupturing existing allocative mechanisms that lead to flows of expenditure, than devolution in the territories (where it can be interpreted as putting democratic caps on pre-existing bureaucratic bodies). Au Royaume-Uni, les depenses publiques ont une portee geographique pour ce qui est des actions decentralisees en Ecosse, aux Pays de Galles et en Irlande du Nord. Il n'y a pas de portee geograhique pour ce qui concerne l'affectation des depenses publiques aux regions d'Angleterre. Cependant, planifiees ou non, les depenses publiques ont un impact sur les regions par moyen de la prestation des services, et a cause de la creation d'emploi et de la production de revenu qui en decoulent. Cet article cherche a examiner des questions methodologiques concernant l'affectation des depenses publiques aux pays et aux regions, et fait la critique de la distribution actuelle et anterieure des depenses publiques aux regions d'Angleterre. Il s'ensuit un examen de l'importance de cette analyse quant a la possibilite d'incorporer une portee regionale explicite dans le mecanisme qui assure l'affectation des depenses publiques en Angleterre. Paradoxalement, il est possible que la regionalisation en Angleterre puisse etre d'une portee plus radicale, en termes de la rupture du mecanisme distributif existant qui amene a des flux de depenses, que ne le fut la regionalisation des territoires (ouil s'agissait de democratiser des organismes bureaucratiques preexistants). Die Ausgaben der offentlichen Hand im Vereinigten Konigreich haben eine Standortdimension in Bezug auf Vereinbarungen mit Schottland, Wales und Nordirland, die im Zuge der Dezentralisierung festgelegt wurden. Die Zuweisung offentlicher Gelder in den Regionen Englands dagegen ist nicht vom Standort abhangig. Geplant oder nicht, wirken offentliche Ausgaben sich nichtsdestoweniger auf die Bereitstellung von Dienstleistungen sowie damit verbundener Erwerbstatigkeit und Schaffung von Einkommen auf die Regionen aus. Dieser Aufsatz untersucht die methodologischen Fragen, die sich aus der Zuteilung offentlicher Gelder an Lander und Regionen ergeben, und bespricht sowohl gegenwartige als auch fruhere Schemata offentlicher Ausgaben in den Regionen Englands. Anschliessend wird die Relevanz dieser Analyse der politischen Optionen bei der Einfuhrung einer ausgesprochen regionalen Dimension in den Mechanismus der Zuteilung offentlicher Mittel in England erwogen. Paradoxerweise erweist die regionale Dezentralisierung Englands sich als radikaler in ihren Implikationen bezuglich eines Bruches mit bestehenden Zuteilungsmechanismen, die zu Ausgabenstromen fuhren, als die Dezentralisierung in anderen Gebieten (wo sie als demokratische Zugelung bereits bestehender burokratischer Korper interpretiert werden kann).

Suggested Citation

  • David Heald & John Short, 2002. "The Regional Dimension of Public Expenditure in England," Regional Studies, Taylor & Francis Journals, vol. 36(7), pages 743-755.
  • Handle: RePEc:taf:regstd:v:36:y:2002:i:7:p:743-755
    DOI: 10.1080/0034340022000006060
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    1. Roy Carr-Hill & Geoffrey Hardman & Stephen Martin & Stuart Peacock & Trevor Sheldon & Peter Smith, 1994. "A formula for distributing NHS revenues based on small area use of hospital beds," Working Papers 022cheop, Centre for Health Economics, University of York.
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    Cited by:

    1. Edgar Morgenroth, 2010. "Regional Dimension of Taxes and Public Expenditure in Ireland," Regional Studies, Taylor & Francis Journals, vol. 44(6), pages 777-789.
    2. Peter Gripaios & Paul Bishop, 2005. "Spatial inequalities in UK GDP per head: The role of private and public services," The Service Industries Journal, Taylor & Francis Journals, vol. 25(8), pages 945-958, December.
    3. repec:rdg:wpaper:em-dp2007-48 is not listed on IDEAS
    4. Vassilis Monastiriotis & Yiannis Psycharis, 2011. "Without purpose and strategy? A spatio-functional analysis of the regional allocation of public investment in Greece," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 49, Hellenic Observatory, LSE.
    5. Peter Gripaios & Paul Bishop, 2005. "Policy Debates Government Output and Expenditure in UK Regions and Sub-regions: An Analysis of the New Experimental Accounts Data," Regional Studies, Taylor & Francis Journals, vol. 39(6), pages 805-813.
    6. Mercedes Rodríguez & José A. Camacho, 2008. "The geography of public services employment in Europe: concentration or dispersion?," The Service Industries Journal, Taylor & Francis Journals, vol. 28(3), pages 325-335, April.
    7. Gianluca Orsatti & François Perruchas & Davide Consoli & Francesco Quatraro, 2020. "Public Procurement, Local Labor Markets and Green Technological Change. Evidence from US Commuting Zones," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(4), pages 711-739, April.
    8. Yannis Psycharis, 2008. "Public Spending Patterns: the regional allocation of public investment in Greece by political period," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 14, Hellenic Observatory, LSE.
    9. Graham Pearce & Sarah Ayres, 2009. "Governance in the English Regions: The Role of the Regional Development Agencies," Urban Studies, Urban Studies Journal Limited, vol. 46(3), pages 537-557, March.
    10. Charlie Jeffery & John Mawson, 2002. "Introduction: Beyond the White Paper on the English Regions," Regional Studies, Taylor & Francis Journals, vol. 36(7), pages 715-720.
    11. Fusillo, Fabrizio & Orsatti, Gianluca & Scandura, Alessandra, 2024. "Public Green Demand and Green Innovation: Evidence from US Firms," Department of Economics and Statistics Cognetti de Martiis. Working Papers 202407, University of Turin.
    12. Mark Sandford, 2002. "What Place for England in an Asymmetrically Devolved UK?," Regional Studies, Taylor & Francis Journals, vol. 36(7), pages 789-796.

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