Barnett Formula

Lord Thomas of Gresford Excerpts

Monday 3rd November 2014 Lords Chamber

[Lord Newby]

My Lords, the noble Lord will be aware that the system for funding across the nations will change as we move to a greater degree of devolution in Scotland and that, when a greater degree of taxation powers is devolved to Scotland, the importance of the Barnett formula will be proportionately diminished. Therefore, it is not as though we are standing still on this; we are making a move in a direction that I hope the noble Lord will support.

[Lord Thomas of Gresford (LD)]

My Lords, I would like to associate these Benches with the tributes that have been paid to Lord Barnett. I used occasionally to share a taxi with him from Euston and he was a delightful person.

Do the Government agree that the cost of providing services to people in Wales on an equal basis is greater than that in England, having regard to relative levels of ill health, poverty and sparsity of population? If so, is not the basic premise of the Barnett formula utterly and fatally flawed?

[Lord Newby]

My Lords, I think that we need to remember that Wales receives greater per capita expenditure support than England; in 2012-13, while in England as a whole the level was just over £6,000, in Wales it was just shy of £7,000.