Borderland West: Assessing the implications of a stronger Wales for the west of England
What would greater devolution to Wales mean for Bristol and the west of England?Article
The Scottish independence referendum, and its fallout, has reawakened the debate about the constitutional settlement for the whole of the UK. This has deeply important implications for the other devolved nations of Wales and Northern Ireland, but also for England itself. Much neglected in this debate is the likely impact of a further strengthening of Welsh devolution on the English 'borderland'. The Welsh–English border is far more porous and economically connected than the Scottish–English border, particularly in the area bridging Cardiff, Bristol and their respective city-regions.
The focus of this report is narrowly on the implications of devolved fiscal policy, and in particular, tax policy. Its broad finding is that tax competition from Wales will affect the west of England only to a limited extent. More generally, the drivers of prosperity in the west of England are unlikely to be substantially affected by the tax-related factors that are likely to be devolved to Wales.
Instead, the issues which the west of England principally faces relate to two sets of wider challenges: those coming from the continuing and growing economic dominance of London and its wider area, and those coming from the continuing development of devolution in the UK. The tools by which Bristol and the west of England are able to determine their own economic future remain highly constrained, despite the city-region's comparatively healthy recent economic performance. The arrangements being put in place for England's other core cities, along with the failure of Bristol and the west of England to agree on a coherent joint vision for growth, represent a more pressing competitive challenge to the region.
Related items
A longer-term tax strategy for Scotland: what needs to change?
Tax is a polarising issue. People hold very strong opinions on the matter. Often these strong opinions are, to put it mildly, not supported by the available evidence. And, frustratingly, the available evidence is not always as complete as…Joined up thinking: Seven tests for the integrated national transport strategy
The UK government is producing England’s first integrated national transport strategy. In this blog, we set out IPPR’s seven tests to judge if the strategy seizes the opportunity to create a fairer, greener and healthier transport system…Earning vs owning: Rescuing opportunity in the asset economy
Life chances are increasingly determined by what you inherit, not what you do. But what can we do about it?