Reform call for devolved spending
The union is being endangered by unfair spending allocations to Scotland, Wales and Northern Ireland, a thinktank has claimed.
The Institute for Public Policy Research’s (IPPR) northern branch says in a report published today that the Barnett formula, used to allocate public finances to devolved institutions, needs to be urgently reformed.
It says Northern Ireland and Scotland receive 21 per cent more money per head than the national average, while England receives three per cent per head less than the average.
Wales receives eight per cent more than the average but the report singles out Scotland as lacking the “spending squeeze” the Barnett formula is meant to foster.
IPPR North senior research fellow Guy Lodge says the formula is “no longer fit for purpose”.
“It does not result in a fair distribution of spending, and is becoming an increasing source of tension between the nations of the UK. There is currently popular support for the continuation of the union in all parts of the country, but failure to act now and address devolved funding could see this tension grow.”
Devolved finance is currently being reviewed, with the Welsh and Northern Irish committed to reviewing the distribution of spending.
Meanwhile the Scottish government is consulting on the issue in its constitutional reform white paper. It is also reviewing the way Scotland is funded in a measure supported by the UK government.
“Barnett has very few friends left. Political parties across the political divide and across the UK are voicing their concerns about the way it works,” Mr Lodge added.
“This presents a real opportunity for reform, which the UK government should now seize.”
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