Urban Wealth Funds and Regional Wealth Funds: Supporting UK Regions' Revitalization Strategies

In a recent paper, economist Philip McCann delves into the potential of urban and regional wealth funds as a means to rejuvenate economically weaker regions in the UK. Titled "Occasional Paper 66: How Can Urban Wealth Funds and Regional Wealth Funds Help UK Regions to Rejuvenate?", the paper falls under the themes of Destitution, Exclusion, and Strategies for Well-Being.

The paper, identified by the report number 66, carries the ISBN 978-1-9162584-8-8 and its main tags include Economic Growth, Regional Economics, and UK Economy.

McCann's paper argues that these wealth funds, different from social and community capital wealth funds, as well as natural environmental wealth funds, offer an important potential step in rejuvenating weaker parts of the UK economy. He contends that if properly constructed as genuine wealth funds, these institutions can provide a key piece of the jigsaw for turning around cities and regions, building long-term investor confidence, and attracting investment back into weaker local economies.

The paper examines the feasibility of establishing urban and regional wealth funds in UK cities and regions. It highlights that the current discussion on industrial strategies, governance devolution, and nationally-orchestrated investments often overlooks the specific effects on local capital markets and the local financial and fiscal implications.

The paper further emphasises that the UK central-sub-central fiscal system is not well-designed to foster capital flows in economically weaker regions, making it essential to reform the interactions between the financial system and the fiscal system. Urban wealth funds and regional wealth funds play different roles compared to the UK National Wealth Fund.

Macroeconomic debt-management arguments can be seen as arguments in favor of using public asset wealth benchmarks by local governments. The paper suggests that these wealth funds could help bridge the gap in UK city and regional spreads in risk premia and investment yields, which are on a continental-wide scale.

However, the authors of the paper are not identified in the provided search results. Nonetheless, the paper provides valuable insights into the potential benefits and feasibility of urban and regional wealth funds in the UK context.

The JEL Code for the paper includes G23, H61, H63, and R11, signifying its focus on economic growth, regional economics, public finance, and urban economics. The paper is a compelling read for anyone interested in the future of regional development in the UK.

Urban Wealth Funds and Regional Wealth Funds: Supporting UK Regions' Revitalization Strategies