From co-operative to competitive localism? The changing balance between equity and efficiency in local government under the Conservative / Liberal Democrat coalition

This paper considers whether there has been a shift in the balance between equity and efficiency in respect of decentralised public policy in England since the election of the Conservative / Liberal Democrat coalition in 2010. Drawing on the literature on policy decentralisation and fiscal federalism from both Political Science and Economics, reasons are discussed why a trade-off between equity and efficiency might be expected. The context of English local government then outlined, and consideration is then given to four areas of policy: business rate localisation, the ‘New Homes Bonus’, council tax benefit and social housing, and regional economic development. In each case, some shift in the balance away from concern with equity towards one with efficiency is discerned: whether or not this is desirable will prove a matter of political and moral, as well as scientific judgement.

The economics behind the move to 'localism' in England

This paper explores the economic thinking behind the UK Coalition government’s new framework for achieving local growth and the creation of Local Enterprise Partnerships in England. It does so in the light of recent debates about ‘space-neutral’ and ‘place-based’ policymaking. While the British government states its ambition to achieve greater spatial and industrial balance across England (and by implication the UK), we argue that so far at least there is a mismatch between the ‘rhetoric’ and ‘policies’ of local growth and its limitations. These relate to inconsistencies in the way that the different competing economic ideas in circulation within government have been adopted in practice. As a result, the paper highlights six key disconnects and limitations of the economics behind the move in England to local growth.