Despite devolution, Scotland's territorial imbalances have widened with power and wealth increasingly concentrated around Edinburgh.
This report examines how devolution has reshaped territorial governance in Scotland while leaving deeper questions of central–local balance unresolved. It highlights three interrelated dynamics.
First, economic and demographic activity has become increasingly concentrated in Edinburgh and the East-Central Belt since 1999, widening gaps with other parts of Scotland.
Second, political power has also centralised at Holyrood, with local authorities constrained financially and institutionally, limiting their role as meaningful counterweights.
Third, public opinion reflects these imbalances, with many Scots in rural and peripheral areas perceiving devolution as having disproportionately benefited central and affluent regions.
A growing debate in Scotland is now focused on the concentration of power in Edinburgh and the limited capacity of local governance. In this context, attention has turned to reforms trialled in England in response to over-centralism, particularly combined authorities and directly elected mayors, which are seen by some as possible approaches to addressing Scotland’s own challenges. Although not directly transferable, these English innovations offer insights into the opportunities and limitations of institutional reforms to strengthen local accountability and voice. The report concludes by reflecting on how Scotland might pursue its own path toward more territorially balanced and responsive governance, while also shedding light on the evolving trajectory of devolution across the UK.
Principles for Reform Rather than proposing specific institutional changes, the report outlines eight principles to guide a more balanced approach to central-local relations in Scotland (and beyond):
1. Territorial equity – Address internal disparities and support all regions.
2. Democratic subsidiarity – Empower decision-making at the most local appropriate level.
3. Institutional distinctiveness – Avoid one-size-fits-all solutions or wholesale adoption of English models.
4. Local legitimacy – Reforms must be rooted in place-specific needs and values.
5. Flexibility – Allow for diverse institutional arrangements across Scotland.
6. Capacity building – Strengthen local government resources and capabilities.
7. Strategic coherence – Clarify responsibilities and improve coordination across levels.
8. Public engagement – Involve citizens meaningfully to rebuild trust and legitimacy.
Scotland now faces a critical moment to reimagine how power is shared within its borders. The goal is to create a more responsive, inclusive, and territorially balanced system of devolved governance.