Policy Debates Government Output and Expenditure in UK Regions and Sub-regions: An Analysis of the New Experimental Accounts Data

Gripaios P. and Bishop P. (2005) Government output and expenditure in UK regions and sub-regions: an analysis of the new experimental accounts data, Regional Studies 39 , 805-813. This paper examines the regional and sub-regional distribution of UK state spending by analysing new data available from recently published Regional Government Accounts. The data indicate wide variations in public spending per head across regions, with London being a particular beneficiary. The results do not indicate any relationship between Gross Domestic Product per head and public spending, and they suggest that, in total, government spending is doing little to ameliorate regional inequality. If the state wishes to pursue an active regional policy, it hence needs to consider the regional dimension of all state functions, not simply those associated with traditional regional policy.