Barnett Formula

Lord Foulkes of Cumnock Excerpts

Tuesday 10th February 2015 Lords Chamber

Asked by

[Lord Foulkes of Cumnock]

To ask Her Majesty’s Government how much has been allocated to the Scottish Government in Barnett consequentials in the last year.

[Lord Newby (LD)]

My Lords, the Barnett formula was applied in the usual way to changes in departmental spending at both Budget 2014 and Autumn Statement 2014. The Scottish Government received £301 million in extra allocations as a consequence of spending decisions taken by the UK Government.

[Lord Foulkes of Cumnock (Lab)]

My Lords, does the Minister agree that Barnett provides secure funding for the Scottish Government and if they had relied on oil revenues they would not have produced the £7 billion that was in the SNP White Paper, but just over £1 billion, and that an independent Scotland would now be bankrupt? Is it not a good job that we voted no in the referendum?

[Lord Newby]

My Lords, it is always a pleasure to agree with the noble Lord. It is, however, worth underlining the point that he has just made. There would be a £6 billion deficit compared to the figures in the Scottish Government’s November 2013 White Paper in respect of oil revenues, which would mean that for that reason alone the Scottish deficit in 2016-17 would be more than 6% of GDP, one of the biggest in the developed world.