Free market thinktank federal UK radical devolution

Institute for Economic Affairs report says stripping Whitehall of most of its powers would create 6% rise in living standards

Stripping Whitehall of the bulk of its powers through a process of sweeping devolution would raise living standards in the UK by 6%, a leading free-market thinktank has said.

The Institute for Economic Affairs said Britain would be richer with a fully federal system in which central government would have control over defence, foreign affairs and border control and all other responsibilities would be passed down to local authorities.

Related: Devolution revolution? Not until there's real public service reform

The UK's approach to devolution is incoherent and unstable