Barnett Formula

Debate between Lord Oakeshott of Seagrove Bay and Lord De Mauley

Monday 7th June 2010 Lords Chamber

[Lord De Mauley]

My Lords, in circumstances where the public sector debt is approaching £900 billion and the PBR forecast for 2009-10 is for net additional borrowings of £156 million, or about 11 per cent of GDP, I am surprised to hear that the noble Baroness thinks that the Barnett formula is a more urgent matter.

[Lord Oakeshott of Seagrove Bay]

My Lords—

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[Lord De Mauley]

My Lords, the Government hear what the noble Lord and other noble Lords say. However, while we recognise the concerns expressed by, for example, the Holtham commission, as I said, the priority must at the moment be to tackle the deficit.

[Lord Oakeshott of Seagrove Bay]

My Lords—

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[Lord Oakeshott of Seagrove Bay]

Thank you, my Lords. The Labour Benches have already had two questions.

Does the Minister agree that, unlike its author, the Barnett formula is now well past its sell-by date? Does he recognise particularly the concerns expressed so thoroughly by the Holtham commission on the whole system of public sector or devolution funding? While obviously accepting that the deficit is the immediate problem, does he not also accept that moving towards fairness between all four nations of the United Kingdom is an important part of getting the deficit sorted?

[Lord De Mauley]

My Lords, I have just said that we recognise the concerns expressed by the Holtham commission, and the Government are listening to what noble Lords are saying.