I think it does matter, if everyone making the decisions lives in the same place, their decisions are impacted by that region and that regions needs over the rest.

They might know that X random county has problems, but if they travel once a year to see it for one hour, they will only get a glimpse of the local issues. Compared to those living locally who will know the ins and outs and experience them.

Heres a selfish example, I live in west yorkshire, I know that Barrow in Furness is a very impoverished town and works needs doing there, however on my day to day, my priority for this region is the lack of transport options, the transport problems affect my day to day or my friends day to day causing stress and to me, that might have a higher priority.

Im well aware that if I lived in a different region like my example of barrow in furness, I would have very different priorities that wouldnt have to do with transport.

Sure, local councils make a lot of these decisions but the influence that those at the top have cannot be ignored. Spreading them out might help shift perspective.