CEP: Would a Tory Government bring in a needs-based formula to replace Barnett?

Professor David Bell of Stirling University has analysed the impact on Scotland of the Welsh Assembly's Holtham Commission report into a needs-based funding formula to replace the out-dated Barnett Formula.

Writing in The Scotsman Prof Bell warns that a move to a needs-based formula could lose Scotland £4.5 billion a year of Treasury funding.

"If its calculations were put into practice, it would have dramatic effects on the Scottish budget," Prof Bell says. "The size of the block grant from Westminster to Holyrood would shrink substantially. Instead of the Scottish grant being 20 per cent higher per head than in England , the margin would shrink to 5 per cent.
"At current spending levels, this would mean a cut of around £4.5bn in Scotland 's annual grant from Westminster ."

During the House of Lord's Select Committee on Barnett, former Conservative Secretary of State for Scotland (1995 to 1997), Lord Forsyth, revealed that in order to guard Scotland 's interests he was counselled against a needs-based formula.

The advice I was given when I was Secretary of State is do everything you can to avoid a needs-based assessment being implemented by the Treasury because the Treasury believe that it will enable them to reduce Scotland's budget by between £2.5 and £4 billion.

Given the possible implications for Scotland , what is the likelihood of a future Conservative Government implementing a needs-based replacement of the Barnett Formula? Would the Tories replace Barnett with a system that is fair to ALL the British nations or would they continue to bribe Scotland to remain in the Union ? The CEP believes that the people of England , whose taxes subsidise the UK , have a right to know.

David WILDGOOSE
Vice-Chairman, Campaign for an English Parliament
0114 274 6191 cep@skein.co.uk
8 December 2009

We must not forget that it is the British that are denying England its political recognition, the British MPs we have sent to parliament to represent England, it is these who are to blame. Until we have our own English MPs not British MPs representing England nothing is going to change.

Song for St. George's Day by Resistance 77

http://www.thisisderbyshire.co.uk/entertainment/Undefined-Headline/article-869549-detail/article.html