Devolution’s False Promise: A Recipe for Disaster?

The push for devolution in England, championed by Prime Minister Rishi Sunak and his allies, has been touted as a solution to the country’s economic woes. However, upon closer inspection, it becomes clear that the devil is very much in the details.

The process of devolution is already mired in controversy, with Whitehall hesitant to hand over power and funds, leading to piecemeal deals that lack momentum. The reorganization of local government has created hundreds of unitary authorities, but this reform has been plagued by judicial reviews and accusations of gerrymandering.

Councils like Hertfordshire and Lincolnshire have expressed concerns about the decision-making process, sending letters to Housing Secretary Angela Rayner seeking clarity. With a deadline for resolution set at Christmas, it’s unclear whether these authorities will be able to function effectively in time for next year’s elections.

The evidence supporting the benefits of structural reform is lacking. The Institute for Government notes that while reforms can be useful, there is no inherent value in them. What truly improves services are reforms to how public officials work, including difficult discussions with trade unions and increased accountability.

Devolution proponents claim it will “supercharge economic growth,” but this notion is little more than myth-making. Geoff Mulgan, a University College London professor and former Nesta boss, warns that devolution must answer fundamental questions about service delivery and decision-making before it can be effective. Otherwise, populist politicians will continue to claim that the public has lost control.

England’s history of centralization makes it particularly difficult to impose a new political structure on the country. The public’s skepticism is well-founded, given the numerous examples of councils falling into debt after attempting to raise themselves up through borrowing.

In reality, devolution poses catastrophic dangers in the world of finance. Local council leaders, armed with a mission to generate growth, are eager to unleash their appetite for risk-taking and borrow as much as possible. This is a recipe for disaster, one that will have far-reaching consequences for the country’s economy.

The British state has long been plagued by inefficiencies and bureaucratic red tape. Rather than attempting to overhaul the system through structural reforms, policymakers should focus on addressing these underlying issues. Only then can we hope to see real progress in improving services and driving economic growth.

As devolution continues to unfold, it’s essential to remember that this approach will likely leave England reeling from the consequences of its own making.