Recent claims that regional government structures are crucial to regio
nal economic competitiveness are controversial. This article summarise
s the economic arguments for regional government and assesses how far
British policy-malting on economic development has become regionalised
. It examines links between regional institutional capacity and region
al economic performance in Britain, commenting in detail upon the expe
riences of four British regions. The penultimate section suggests the
common allegation that Britain is out of step with its European Union
partners in terms of regional structures and support for regional econ
omic development is overdrawn. The final section argues that regional
government is by no means a proven economic necessity.