Will Andy Burnham's devolution plan raise economic growth?

Here is the latest breaking news from around the world: Will Andy Burnham's devolution plan raise economic growth? Image source, Getty ImagesByBen ChuPolicy & Analysis Correspondent, VerifyPublished11 minutes agoAndy Burnham promised the "biggest rebalancing of power our country has seen" as part of his plans for the UK if he becomes the next prime minister. In his first major policy speech, Burnham said on Monday he would seek to take power away from Whitehall and devolve it to all parts of the UK.

This would include Greater Manchester and other city regions in England. But the former Mayor of the Greater Manchester Combined Authority also said he would further extend devolution in Scotland, Wales and Northern Ireland - though not giving detail - and also promised to give Greater London more devolved powers. Burnham, who was sworn in as the new MP for Makerfield last week, said this radical devolution of power was essential for delivering higher economic growth in all parts of the UK.

The Details

"We will never get growth up to the level Britain needs unless every single postcode in the land is set up to contribute to it," he said. Verify has looked at what impact further devolution could be expected to have on economic growth across the UK. What powers are devolved?

Scotland has had extensive devolution, with the Scottish parliament now holding powers covering health, education, local government, environment, justice and policing. Holyrood also has powers to set most income tax rates (although not the level of the tax-free personal allowance) and has some control over welfare. The Welsh Senedd's devolution powers are more limited compared with Scotland, though it does include running the NHS in Wales, education, local government and housing.

The Senedd also has some tax powers, including the ability to to vary income tax rates. But, unlike Scotland, it has no justice or policing powers. Under the terms of the 1998 Good Friday Agreement, the Northern Ireland Assembly has significant devolved powers, including over health, education and housing.

What Experts Say

There has also been some devolution, external to English city regions over the past decade, albeit less extensive than for Scotland, Wales and Northern Ireland. Manchester has some of the most extensive devolved powers of any of the English city regions, with some authority over transport, housing, skills and health spending. Has devolution helped growth in the nations?

Most economists who have studied the impact of devolution have not identified any significant increase in overall economic growth rates in Scotland, Wales and Northern Ireland over the past quarter of a century. There is also no clear evidence of those nations catching up with the UK average, although it's important to stress the UK average is heavily influenced by the performance of London and the South East of England.

The development has drawn wide international attention, with diplomatic circles watching closely.