Barnett Formula

Lord Forsyth of Drumlean Excerpts

Tuesday 10th February 2015 Lords Chamber

[Lord Newby]

My Lords, there are many different views about where equity lies in this respect. The effect of the transfer of fiscal responsibility means that, going forward, the extent to which Scotland has money to spend will depend increasingly on the success of the Scottish economy and therefore very much upon the effectiveness of the Scottish Administration.

[Lord Forsyth of Drumlean (Con)]

My Lords, will my noble friend reflect on the fact that if it is the Government’s policy that the Scottish Parliament should be more responsible for the money it spends and should raise that money, the corollary is that the grant should be done on a needs basis and not on the basis of a formula that dates back to the 1970s, which clearly disadvantages the north of England, Wales and the rest of the United Kingdom? Why have the Government set their face against the report of the Select Committee of this House on the Barnett formula which spelled this out very clearly?

[Lord Newby]

My Lords, apart from the fact that the parties have supported the Barnett formula, the effect of the changes being made is that the relevance of the Barnett formula going forward is being cut by two-thirds and therefore any disparity that it might bring about will be reduced by an equivalent proportion.