WISERD Working Paper Series, WISERD/WPS/002

A created community, a Nation State, is strengthened by a sense of fair and equitable treatment. Within Nation States the allocation of public funds through national budgets acts to contain regional inequality and to provide a positive response to structural decline. The UK Treasury accepts need as the correct guide to spending on public services in different parts of the UK. However, spending in London, Scotland and Northern Ireland is higher than measures of need would suggest. The division of public expenditure is too generous to Scotland, while unbalanced growth has contributed to expensive public services within the capital.