UK Government Plans Scrutiny for Devolved Spending Powers
The British government is developing audit and recall mechanisms to prevent the misuse of income tax revenues as it devolves spending power to regional leaders.
The Government of the United Kingdom is designing oversight mechanisms to prevent regional leaders from misusing new spending powers as Whitehall prepares to devolve more income tax revenue to local levels. These measures are a central component of the growth policy adopted by Prime Minister Andy Burnham's government.
To ensure accountability, ministers are considering the creation of a new audit body, enhanced reporting requirements, and a new select committee in Westminster. The government is also exploring the possibility of allowing the electorate to recall mayors who are deemed spendthrift. A white paper titled "rewiring the state" is scheduled for publication later this month to detail these frameworks.
Meg Hillier, chair of the Treasury select committee, has argued that her committee is the appropriate body to scrutinize these powers. She warned that it would be "reckless" to hand out new powers without transparent mechanisms to hold mayors accountable for their decisions. Meanwhile, the Institute for Fiscal Studies has recommended the use of equalisation payments to ensure wealthier regions, such as London, do not pull ahead of other areas in funding.
