Has the British government abandoned its fiscal devolution plans?

Poor George. Image: Getty.

The recent Queen’s Speech made no mention of the Local Government Finance Bill. That suggests that the business rates reform has been put on ice, at least for the time being – and that the UK will continue to be one of the most centralised countries in the developed world.

This is a concern for a number of reasons. Firstly, business rates devolution could play a crucial role in supporting the development of local economies. It would enable local authorities to capture the fiscal benefits of economic growth within their area, therefore giving them a greater incentive to take the right decisions to improve their economy.

There is no such incentive under a full-grant system of funding, because local authorities generally receive an amount of money that corresponds to their needs, regardless of how well they perform. In other words, fiscal devolution rewards good policy practices by increasing local revenues. So far the move towards a 50 per cent retention structure, in place since 2011, has not been substantial enough to generate this incentive.

Secondly, business rates devolution would give local authorities more control over some of their revenues and how they spend them. This greater control is important from a policy point of view, as it means local authorities can develop more tailored policies, moving away from the one-size-fits-all model.

From a political perspective, it also results in stronger accountability for local government. Currently in the UK local taxation only represents 5 per cent of total tax revenues, compared to the OECD average of more than 10 per cent.


But this also comes with challenges, which may explain why the government has been relatively wary about moving towards more devolution.

One difficulty is making sure the system is well-designed to incentivise and reward good policy decisions to the largest number of places across the country. The system as it is currently constructed mainly rewards the building of more floor space – but this isn’t an appropriate solution everywhere because of the varying economic performance of places across the country. Another challenge is to make sure that the weakest economies will still be supported by this funding mechanism, without hindering too much the growth incentive in more successful places.

Of course, cities already possess a number of tools to increase their revenues – with or without business rates devolution – as the Centre for Cities’ latest report on public assets illustrates. By adopting a more entrepreneurial approach to using the assets at their disposal, cities can support economic growth, increase their tax base, and attract more businesses and jobs.

Nonetheless, business rates devolution would be a hugely important step towards reversing decades of centralisation in the British political system and giving cities more of the control they need to boost their economies. Scrapping these plans now would be a backwards step by the government.

It is unclear if the plan to devolve business rates has been dropped or simply postponed to later. But given how far discussions went – pilot areas to experiment the new system had been launched and are to be maintained – seeing the legislation reintroduced is a conceivable option.

Our upcoming work will reflect on those issues set above, and will focus on how business rates devolution can be designed so that every city and local authority across the country can get the most out of devolution. Watch this space for more details in the coming months.

Hugo Bessis is a researcher for the Centre for Cities, on whose blog this article originally appeared.

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Why is it acceptable to kill someone? On the mysterious history of Britain’s road death toll

A London speed camera, 2004. Image: Getty.

A decade ago I became fascinated by a graph. This one:

I had been tracking the underlining data for years. The figures were easy to remember. Every year it was 3,500, plus or minus a percentage point or two.

Yet when the 2008 data was released, it had fallen to 2,538. This was 1,000 less than the figure in 2003. I plotted the above graph, and as I said, I became fascinated.

Because this is a really important graph. This is a plot of the number of people killed on Britain’s roads each year.

In Great Britain, collectively, we used to kill nearly 3,500 people on our roads every year. Consistently or, dare I say it, boringly: 3,500 deaths a year, 10 a day. It was accepted, in a, “Well yes it’s bad, but what can you do about it” kind of way. There was no clamour for change. Newspapers weren’t running headlines about the deaths mounting up, as they do with knife crime.

Meanwhile a train crash would be front page news for a week. Take the train that derailed at Hatfield on 17 October 2000, a tragedy in which 4 people died. That led to huge media interest, massive upheaval on the railways, and, ultimately, as the re-nationalisation of Railtrack, whose failings had caused the crash. Yet more than twice as many people will have died on the roads that day. Nothing was written about those deaths. Nothing changed.

In 2000, four people died in train crashes, while 3,409 died on the roads.

Here are those figures again.

1997 – 3,599 people killed on our roads

1998 – 3,422

1999 – 3,423

2000 – 3,409

2001 – 3,450

2002 – 3,431

2003 – 3508

But, in 2004 the figure dropped below 3,400 for the first time, to 3,221. Then in 2005 to 3,201.

2006 – 3,172

2007 – 2,946

Below 3,000! This was change. Significant change: 500 lives a year were not being lost. If you use Britain’s roads, your life may have been one of them.

2008 – 2,538

2009 – 2,222

When the 2010 figures came out I was amazed by the headline figure: 1,857.

That’s still far too high, of course, but it was 1,701 lower than seven years earlier.

This was a major story that deserved a ton of coverage, which it failed to get. Having shown no concern for when we were killing 3,500 people, it wasn’t overly surprising that the fact we were now killing 1,700 fewer wasn’t celebrated.

At any rate, the graph had flat-lined for years, then, in half a dozen years, it halved. Why?

The lack of media coverage resulted in an absence of answers. One commentator, Christian Woolmar, observed that there was no clear answer to why this had happened. But he went on to point out that there had been a fall in the average road speed over this period.

My anticipation of the 2011 figures troubled me, because I expected them to go up. Obviously I didn’t want them to: I desperately want zero deaths on our roads. But something happened in 2010 that I was sure would lead to more fatalities and bring a halt to the falling trend.

I was right. In 2011 we killed 1,901.

Sometimes, being right is shit.

The news was better in 2012. The fatality rate was 1,754. So was the 2011 figure just a blip, due to some significant snowfalls that year? No: the trend was over.

The number of people killed on our roads has remained stuck in the 17 hundreds. 

2013 – 1,713

2014 – 1,775

2015 – 1,732

2016 – 1,792

2017 – 1,793

2018 – 1,782

We have returned to a flatline on the graph – and if anything, I’m more fascinated now than I was before. Road deaths flatlined at 3,500 for years, then fell sharply, then flatlined again at half the rate.

This can’t have happened by accident. I wished I could explain it. I wish we could repeat it. No: I wish the second flatline hadn’t happened, and the fall had continued. If the rate of fall had continued, we’d have reached zero deaths on the road by now. You’d be right to question whether this is possible – but if you can half the number in a few years, why can’t we eradicate them altogether? The railways are an example of what is possible. The last time a passenger died in a train crash on Britain’s railways was in 2007.

It was time to figure out the answers to two questions. Why did the death toll fall? And why did it stop falling?

The obvious reason for a reduction in deaths on the road is the improvement in car safety features. This could create a gradual fall in the death toll as new, safer cars replaced older ones. But I’m not sure it can explain a 40 per cent fall over a 4 year period.

There’s a way to check whether cars on the road became almost twice as safe between 2003 and 2010: you can compare the figures with the rest of the EU. Car safety features are international, and any new feature would have appeared around the same time across the continent.

So I found the EU figures for 2000 to 2017, indexed for 2000 and plotted the graph for multiple countries. It was a busy graph. For clarity the following graph only includes Britain, Germany, France, Spain and Italy along with a straight line drop for comparison.

The good news is that things are improving across Europe – but no country had quite the same trajectory as Britain. They all have a fall much closer to a straight line of the sort you’d expect a general improvement in car safety would produce.

One thing I did notice is that, from 2013, these five countries stop falling. The technology based solutions of recent years, such as automatic emergency braking, don’t appear to be saving lives as of yet.

So, yes, cars are safer – but that doesn’t seem to explain why British roads suddenly became 40 per cent safer between 2006 and 2010.


In 1999, the New Labour government announced that it was going to reduce deaths on our roads. The target was a 50 per cent reduction by 2010. As you now know, it succeeded. This was a major achievement for a government. The kind of thing you would bang on about all the time. “Deaths on our roads halved by Labour!” But the party wasn’t in government when the 2010 figures were released – and it’s hard to take credit for your achievements from the opposition benches.

That it was government policy is not a full explanation, and how this happened is a little opaque. From what I can gather there was a wide ranging approach. The fire and rescue service changed their practices: because they recognised that survival rates were directly dependent on how quickly people got to hospital, this became the priority. Disturbing a police crime scene was allowed if it saved a life. Accident black spots were located, highlighted and safety measures implemented. Throughout that period road safety campaigns focused on speed, with “Speed Kills” being the dominate message for that decade. The government also changed the laws on speed cameras.

RoSPA, the Royal Society for the Prevention of Accidents, has a lot to say about speeding and speed cameras. Its “Speed Camera Factsheet” states that, “Cameras are a very effective way of persuading drivers not to speed, and thereby reducing the number of people killed and seriously injured.” It reports that an independent review published by the Department for Transport (DfT) in 2005 said that “cameras significantly reduce speeding and collisions, and cut deaths and serious injuries at camera sites”, adding that cameras sites were delivering 100 fewer deaths per year.

Cameras first appeared in 1991, and revenue from court fines and fixed penalties went to the Exchequer. However in 2000 a trial scheme saw local councils keep the fines to pay for the cost of speed and red-light cameras. The pilot was so successful that, in 2001, legislation enabled this to happen across the country. The cost of providing and operating cameras moved from the local authority to the law breaking motorist.

The golden age of the speed camera had begun.

There was a tweak to this legislation in 2007. Fines reverted back to the Exchequer’s piggy bank. The DfT switched to funding cameras through a road safety grant. The intention was to create a greater mix of road safety measures agreed between local authorities and the police.

The number of people killed on British roads in 2007: 2,946

The number of people killed on British roads in 2010: 1,857

So perhaps the creation of the Road Safety Grant had a significant impact.

The second question: why did the death toll stop falling?

In 2010 I was unaware of Labour’s target to halve deaths on the roads. But, the change in government was enough for me to predict that the fall was over.

When the Tory/Lib Dem government negotiated its way into power in May 2010, the press declared that it was the end of the horrible nanny state – a return to personal freedom, liberty and the rule of common sense.

The way that this was to play out in real practical terms was on our roads. The evil speed camera was in the firing line. The narrative was that these cameras were just there so councils could extract cash from the poor public. Completely ignored were the facts that the fines were only handed down to dangerous, law-breaking drivers, and that councils no longer got the cash from fines.

Soon after the election the coalition government said that “Labour's 13-year war on the motorist is over” and pledged to scrap public funding for speed cameras. The Road Safety Grant to local authorities was cut from £95m to £57m. This meant that the government was now receiving an estimated £40m more raised in fines than it was spending on road safety. The cut to the grant reduced the camera maintenance budget by 27 per cent. It removed all the funding for new cameras, speed humps and other safety measures.

And the golden age ended.

Councils across the country announced their change of policy. Oxfordshire County Council switched off its speed cameras on 1 August 2010. Money was saved; lives were lost.

Eight months later, on 1 April, Oxfordshire’s cameras snapped back into life when the council reversed its decision because deaths on the county’s roads had immediately increased.

Turning off speed cameras sent out the message that we were no longer taking speeding seriously. The road safety campaigns changed their focus. The message that Speed Kills fell away and was replaced by drink- and drug-driving messages. It’s easy to miss that these campaigns move from encompassing virtually every driver to targeting a minority. A switch from confronting a socially acceptable behaviour to re-enforcing something already unacceptable. The state is no longer challenging everyone to be safe – only the small minority of bad people.

Yet speed still kills. The World Health Organisation states that an increase in average speed of 1 km[h typically results in a 3 per cent higher risk of a crash involving injury, with a 4–5 per cent increase for crashes that result in fatalities.
The majority of safety measures installed before 2010 remain in place and are saving lives. But with the funding gone councils are no longer installing new measures and the death toll is no longer falling.

So you can make a strong case that the pattern of road deaths was the result of government policy.

Which begs the question of our government: why has it accepted that it’s OK to kill, or be killed, on our roads?