This blog shares details of a new project called ‘Improving public funding allocations to reduce geographical inequalities’, involving an inter-disciplinary multi-institution team led by Charlotte Hoole (Principal Investigator), Anne Green, Sheela Agarwal, Sarah Ayres, Jon Burchell, Ceri Davies, Jonathan Davies, Mike Emmerich, Daniel Mutibwa and Andy Pike, with James Gilmour, Abigail Taylor and Sanne Velthuis.
Challenges in Addressing Geographical Inequalities in the UK
In recent years, the issue of widening geographical inequalities across the UK has gained significant attention. This is fuelled by several interconnected factors. A highly centralised governance system, coupled with fragmented devolution, has led to policies ill-suited for diverse local and regional needs. In addition, short-term, small-scale initiatives and competitive funding practices have failed to provide sustained support for struggling areas. Compounding these issues, austerity measures and fiscal crises affecting many English local authorities have severely limited their capacity to drive sustainable local growth. This combination of structural problems and financial constraints has created a challenging environment for addressing local and regional disparities and promoting equitable development across the country.
A New UK Government
The election of a new UK Labour Government in July 2024 presents an opportunity for change, with addressing spatial disparities a top priority. The Government’s plan involves a three-pronged approach: empowering communities; fostering partnerships between Westminster, local leaders, and the private sector; and adopting a proactive central government role. The idea is to unlock local potential and coordinate efforts more effectively over the longer term. However, a crucial challenge remains: how to efficiently allocate limited public resources in a strained economy to support this ambitious agenda. The new government must balance its transformative goals with the fiscal realities it inherits, requiring innovative strategies to maximise the impact of available funds and stimulate sustainable local and regional growth.
Our Research Approach
To address this complex issue, the research team seeks to answer five fundamental questions:
- What funds and funding allocation approaches exist in the UK, and how do they interact at different institutional levels and geographical scales?
- How do funding approaches impact opportunities to utilise funding in places to best meet local needs?
- What are the implications of devolution for the allocation and use of funding in place?
- How can funding allocation better align with the priorities of people in place?
- What are the options for policy reform to improve funding allocation in England?
By addressing these questions, the research team aim to contribute to the UK Government’s policy goal of reducing spatial inequalities by suggesting more effective ways of allocating funding between different areas in England.
Our methodological approach combines drawing together existing evidence on public funding allocation and bringing new knowledge to bear on the issues via stakeholder engagement, in coproduction with national and local policymakers and other interested groups.
Expected Outcomes and Impact
As the UK continues to grapple with local and regional disparities, a more equitable and efficient public funding allocation system could play a crucial role in narrowing the gap between prosperous and disadvantaged areas. By involving stakeholders, including citizens and co-producing knowledge with policymakers, the project team aim to ensure that findings are relevant and applicable to what is happening on the ground. The findings could help shape the future of public funding in England, leading to more targeted and effective investments in areas that need it most. This, in turn, could help create a more balanced and prosperous nation, where opportunities are less determined by geographical location.
Stay tuned for updates on this important project. As we move forward, we invite policymakers, local leaders, and interested citizens to join the conversation and help reshape how public funds are allocated in the UK to support a more balanced and prosperous nation.
Learn more about this project – Improving public funding allocations to reduce geographical inequalities.
This blog was written by Dr Charlotte Hoole, Research Fellow at City-REDI, University of Birmingham.
Disclaimer:
The views expressed in this analysis post are those of the authors and not necessarily those of City-REDI or the University of Birmingham.