Barmy spending formula

By William Green on Nov 19, 08 01:09 PM

Gordon Brown should wake up when it comes to dividing up public cash because the system of allocation is bust.

The uniquely named Barnett Formula hands ÃÂ£1,500 more per head to Scotland than England. The North East get more public money per head than the English average, but still ÃÂ£716 less per person than Scotland.

But experts, reporting to a commission on Scottish devolution, have concluded public spending per head in Scotland has exceeded England since around 1900 and grievances about the situation cannot be "conclusively" rebutted.

Even former Treasury Minister Lord Joel Barnett, who introduced the formula, says: "It should be based on need rather than the present system. Of course I have been in favour of it being changed."

And he has successfully fought for a Lords committee to be set up to examine the issues, with the first meeting next month.

Katie Schmuecker, from the Institute for Public Policy Research North think tank, says its research showed Scotland received ÃÂ£5,676 per head through the Barnett Formula in 2007-08, the equivalent figure for the North East was ÃÂ£4,960 per head - ÃÂ£716 less each.

"Our research found no clear relationship between the level of spending and the level of need in different parts of the UK."

"Ippr north is urging the commission to recommend reform of the Barnett formula to a fairer funding system for devolved administrations, which would link the amount of public spending to the need of an area.

"Scotland should also have the power to raise more of its own taxes in line with public opinion in both England and Scotland," she adds.

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2 Comments

Chris Abbott said:

On top of the inequalities of the Barnett Formula, according to The Financial Times, Gordon Brown "quietly slashed" the English NHS budget by ÃÂ£2bn whilst leaving the Scottish and Welsh versions completely intact in his last act as Chancellor -

http://www.ft.com/cms/s/0/f7a994d0-2677-11dc-8e18-000b5df10621.html?nclick_check=1

Mr Brown is well aware of the unfairness of the Barnett Formula - but closes his ears to it. Just as he closes his ears to the cries that it is unfair that 75% of his government's legislation does not affect his own constituents as Scotland has its own devolved national parliament.

In 1989, Mr Brown signed The Scottish Claim Of Right, vowing to put Scottish interests first in all he does.

That includes valuing Scots' lives more highly than those in England, it seems.

November 20, 2008 11:20 AM

Fred Forsythe (not the) said:

The Barnett is a front. It is sinsignificant in relation to what ids shoved up there by covert means.

://uk.youtube.com/watch?v=-Ff_RvWXus4

November 20, 2008 6:50 PM

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