Wales: Barnett Formula Debate

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Department: HM Treasury

Wales: Barnett Formula

Lord Forsyth of Drumlean Excerpts
Wednesday 20th June 2012

(12 years, 5 months ago)

Lords Chamber
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Lord Sassoon Portrait Lord Sassoon
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No, my Lords, the Treasury is not remotely casual about the national finances, and what the noble Baroness says about the Scottish funding situation might well be challenged by others in other devolved parts of the nation.

Lord Forsyth of Drumlean Portrait Lord Forsyth of Drumlean
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My Lords, it would not be challenged by me—and, indeed, the Select Committee came to that unanimous view. But what is the difficulty with finding an agreed needs-based formula for funding when the money that Scotland receives is distributed to health and local authorities using precisely a needs-based formula for funding? Surely it is time to deal with a matter that is creating division in the United Kingdom at a time when we need unity.

Lord Sassoon Portrait Lord Sassoon
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My Lords, one difficulty is that there is no consensus on the appropriate way in which to measure needs for any replacement. As the previous Government said in response to the Select Committee report,

“the Barnett formula has a number of strengths, among them the merit of allowing the devolved administrations to determine their own assessment of needs and priorities in devolved areas”.