In this episode of Placecast, Nicola Headlam speaks with Abigail Taylor (City-REDI) and Jeff Matsu (former Chief Economist at CIPFA and City-REDI Associate) about their groundbreaking comparative research on governance and fiscal devolution between Japan and the UK. Their work, supported by international partnerships and field visits to Osaka and Tokyo, offers fresh insights into how decentralisation and collaborative leadership can shape better outcomes for regions.
Placecast is a Local Policy Innovation Partnership (LPIP) Hub production based at City-REDI, University of Birmingham. It is essential listening for those keen to explore the ins and outs of knowledge mobilisation for influence in central and local government, based on the view that it’s only through animating the power of place-based leadership that the wicked problems of 2026 can become more manageable.
Guest speakers
Jeffrey Matsu is Chief Economist at the Chartered Institute of Public Finance and Accountancy (CIPFA) and a Fellow at the Blavatnik School of Government, University of Oxford.
With extensive experience in connecting policy with practice through evidence-based research, he works with partner governments, accountancy bodies and the public sector around the world to advance public finance and support better public services.
Jeff holds degrees in economics from the University of Washington and Johns Hopkins University.
Dr Abigail Taylor is a Research Fellow at City-REDI, University of Birmingham, and leads on several themes for the Local Policy Innovation Partnership (LPIP) Hub. Abigail’s research interests lie in regional and local labour markets, skills, institutions, employment support policy and place. Sub-interests include future skills mismatches, lifelong learning, funding flows and governance structures. Abigail has extensive experience in comparative international research.
Host
Dr Nicola Headlam has over 20 years of experience working across all aspects of the multi-helix innovation system, including central and local government, civil society and campaigning, academic research and knowledge mobilisation, and industry. Along the way, she has honed her expertise in urban and regional subnational economic development, the roles of government in shaping place, and in utilising data and evidence for transformation.
In 2024, she became a freelance economic advisor on the role of leadership and partnerships, urban and living lab forms for research, future of cities and foresighting methods, urban transformations, place-branding and urban regeneration and the spatial consequences of public policy.
Key themes and insights from the podcast
Why Japan?
Japan was chosen as a comparator due to its G7 status and distinct governance structures. Language barriers and cultural differences made the research challenging but rewarding, highlighting the importance of breaking Anglosphere assumptions.
Research approach
The research project used desk research combined with interviews and immersive fieldwork in Japan. In-person engagement proved invaluable for understanding nuances often lost in translation and literature.
Governance and fiscal mechanisms
Japan’s decentralisation reforms grant local governments significant fiscal autonomy, including control over tax revenues and annual updates to allocation systems. The UK’s devolution is slower and less consistent, often hampered by policy instability and short-termism. Japan’s equalisation mechanisms ensure basic service provision but can reduce incentives for economic growth—an important lesson for UK policymakers.
Organisational Structures and Stability
Japan benefits from enduring governance arrangements and formal processes for piloting new powers.
UK structures are more volatile, with frequent institutional changes creating uncertainty.
Secondment Systems: Building Collective Understanding
Japan’s long-term secondment system fosters mutual understanding between central and local government, strengthening collaboration. The UK’s more individualistic career progression lacks this systemic approach.
Cultural and Strategic Lessons
Japanese governance emphasises collective decision-making and trust, contrasting with the UK’s individualistic tendencies. Incremental change, not grand rhetoric, drives sustainable progress—highlighting the gap between political vision and administrative reality.
Practical Takeaways for the UK
- Prioritise consistency in policy frameworks to encourage investment.
- Explore structured secondment systems to build cross-tier understanding.
- Embed trust and collaboration as core principles of governance reform.
Enabling Regional Growth: Institutional and Fiscal Lessons from England and Japan
Transcript
Find out more about the Local Policy Innovation Partnership Hub.
Disclaimer:
The views expressed in this analysis post are those of the author and not necessarily those of City-REDI or the University of Birmingham.
Generative AI was used to summarise the transcript from the podcast to create the introduction and key points for the blog.