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The Barnett Formula – UK Parliament

BARNETT FORMULA ‘ARBITRARY AND UNFAIR’ AND SHOULD BE SCRAPPED – LORDS COMMITTEE

The House of Lords Committee on the Barnett Formula has today labelled the Formula ‘arbitrary and unfair’ and recommended it should be replaced by a system that recognises changing population levels and the differing economic needs of the devolved nations.

The Committee argue the Formula, which accounted for almost £49bn of annual public spending last year and has been in place since 1978, was only intended to be a short term measure and should no longer be used to determine block grants for the UK’s devolved administrations. They recommend a UK Funding Commission be established to assess relative need in the UK’s regions and advise on a new method of distributing funding to reflect those needs.

via The Barnett Formula – UK Parliament.

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