Regional policy spillovers : the national impact of demand-side policy in an interregional model of the UK economy

UK regional policy has been advocated as a means of reducing regional disparities and stimulating national growth. However, there is limited understanding of the interregional and national effects of such a policy. This paper uses an interregional computable general equilibrium model to identify the national impact of a policy-induced regional demand shock under alternative labour market closures. Our simulation results suggest that regional policy operating solely on the demand side has significant national impacts. Furthermore, the effects on the nontarget region are particularly sensitive to the treatment of the regional labour market

Understanding the scale and nature of outcome change in area-regeneration programmes: evidence from the New Deal for Communities Programme in England

The New Deal for Communities (NDC) Programme is one of the most intensive area-based initiatives (ABIs) launched in England. Between 1998 and 2010, 39 NDC Partnerships were charged with improving conditions in relation to six outcomes within deprived neighbourhoods, each accommodating around 9,800 people. Data point to only modest change, much of which reflected improving attitudes towards the area and the environment. There are problems in identifying positive people-based outcomes because relatively few individuals benefit from relevant initiatives. Few positive benefits leak out of NDC areas. Transformational change was always unlikely bearing in mind the limited nature of additional resources, and because only a minority of individuals directly engage with NDC projects. This evidence supports perspectives of ABIs rooted in 'local-managerialism'

Public Participation Organizations and Open Policy:A Constitutional Moment for British Democracy?

This article builds on work in Science and Technology Studies and cognate disciplines concerning the institutionalization of public engagement and participation practices. It describes and analyses ethnographic qualitative research into one “organization of participation,” the UK government–funded Sciencewise program. Sciencewise’s interactions with broader political developments are explored, including the emergence of “open policy” as a key policy object in the UK context. The article considers what the new imaginary of openness means for institutionalized forms of public participation in science policymaking, asking whether this is illustrative of a “constitutional moment” in relations between society and science policymaking

Introducing willingness-to-pay for noise changes into transport appraisal: an application of benefit transfer.

Numerous research studies have elicited willingness-to-pay values for transport-related noise, however, in many industrialised countries including the UK, noise costs and benefits are still not incorporated into appraisals for most transport projects and policy changes (Odgaard et al, 2005; Grant-Muller et al, 2001). This paper describes the actions recently taken in the UK to address this issue, comprising: primary research based on the city of Birmingham; an international review of willingness-to-pay evidence; development of values using benefit transfers over time and locations; and integration with appraisal methods. Amongst the main findings are: that the willingness-to-pay estimates derived for the UK are broadly comparable with those used in appraisal elsewhere in Europe; that there is a case for a lower threshold at 1 45dB(A)Leq,18hr1 rather than the more conventional 55dB(A); and that values per dB(A) increase with the noise level above this threshold. There are significant issues over the valuation of rail versus road noise, the neglect of non-residential noise and the valuation of high noise levels in different countries. Conclusions are drawn regarding the feasibility of noise valuation based on benefit transfers in the UK and elsewhere, and future research needs in this field are discussed

The impact on welfare and public finances of job loss in industrial Britain

It is important to take a long view of many economic problems. This paper explains how the large-scale loss of industrial jobs in parts of Britain during the 1980s and 1990s still inflates the contemporary budget deficit in the UK. Drawing on the findings of several empirical studies by the authors, it shows that although there has been progress in regeneration the consequences of job loss in Britain’s older industrial areas have been near-permanently higher levels of worklessness, especially on incapacity benefits, low pay, and a major claim on present-day public finances to pay for both in-work and out-of-work benefits. Furthermore, as the UK government implements reductions in welfare spending the poorest places are being hit hardest. In effect, communities in older industrial Britain now face punishment in the form of welfare cuts for the destruction previously wrought to their industrial base

The impact on welfare and public finances of job loss in industrial Britain

It is important to take a long view of many economic problems. This paper explains how the large-scale loss of industrial jobs in parts of Britain during the 1980s and 1990s still inflates the contemporary budget deficit in the UK. Drawing on the findings of several empirical studies by the authors, it shows that although there has been progress in regeneration the consequences of job loss in Britain’s older industrial areas have been near-permanently higher levels of worklessness, especially on incapacity benefits, low pay, and a major claim on present-day public finances to pay for both in-work and out-of-work benefits. Furthermore, as the UK government implements reductions in welfare spending the poorest places are being hit hardest. In effect, communities in older industrial Britain now face punishment in the form of welfare cuts for the destruction previously wrought to their industrial base

The relative efficiency of automatic and discretionary regional aid

For the last two decades, the primary instruments for UK regional policy have been discretionary subsidies. Such aid is targeted at "additional" projects - projects that would not have been implemented without the subsidy - and the subsidy should be the minimum necessary for the project to proceed. Discretionary subsidies are thought to be more efficient than automatic subsidies, where many of the aided projects are non-additional and all projects receive the same subsidy rate. The present paper builds on Swales (1995) and Wren (2007a) to compare three subsidy schemes: an automatic scheme and two types of discretionary scheme, one with accurate appraisal and the other with appraisal error. These schemes are assessed on their expected welfare impacts. The particular focus is the reduction in welfare gain imposed by the interaction of appraisal error and the requirements for accountability. This is substantial and difficult to detect with conventional evaluation techniques

e-Social Science and Evidence-Based Policy Assessment : Challenges and Solutions

Peer reviewedPreprin

The impact of the Barnett formula on the Scottish economy: endogenous population and variable formula proportions

The Barnett formula is the official basis upon which increments to public funds are allocated to the devolved regions of the UK for those parts of the budget that are administered locally. There is considerable controversy surrounding the implications of its strict application for the relevant regions. The existing literature focuses primarily on the equity of the spatial changes to government per capita expenditure that would accompany such a change. In contrast, in this paper we attempt to quantify the system-wide economic consequences-the real, relative resource squeeze that accompanies the financial relative squeeze-on one devolved region, Scotland. The analysis uses a multisectoral regional computable general equilibrium modelling approach. We highlight the importance of population endogeneity, particularly since the population proportions used in the formula are now regularly updated