Sunday, January 8, 2012

Scotland funding is grossly unfair

That is according to the chairman of the Local Government Association.

Local authority funding in Scotland, Wales and Northern Ireland is governed by the so called Barnett Formula.  This was a 'stop-gap' measure introduced, by the then Labour government,  in the late 1970s which has survived until now because politicians have failed to 'grasp the nettle' and address the inherent "unfairness and plain illogicality" of it.

Whenever a English department gets a change to its budget, the other countries of the Union get an automatic share.  The formula is based on population rather than need.

For example, when the UK Government froze council tax for English councils, saying that they couldn't raise additional taxes from local tax payers, the Government softened the blow by giving these councils an additional grant.  Simply, because of the formula, an extra £67.5 million was then given to Scotland.  This even though the devolved Scottish parliament had already frozen council tax in Scotland!

As another example, Scotland and Wales both receive extra money because Crossrail is being built in London.  Even though both of these countries don't have to make  a case for local projects requiring such funding!

Oh!, and when cuts are being made, Scotland, Wales and Northern Ireland, get cut less!

Recent research shows that if the formula was revised there would be an additional £2.6 billion of funds diverted from Scotland, Wales and Northern Ireland to English local authorities.  That would help keep quite a few English libraries open and 'meals on wheels' services running, wouldn't it?

According to the UK Treasury, the Government spend per person, in Scotland was £10,212 last year.  That was £1,624 per person, more than in England.

 Someone not a million miles from Downing Street keeps saying "We're all in this together" but I can't help thinking that those on the Celtic fringe are better protected than the heartland majority.

I can understand Labour protecting the Barnett Formula - it was devised by them and protects their strongholds that have, so far, always returned  lots of Labour MPs.  Why do the Conservatives keep it on?

Time for an equitable change!

Even Lord Barnett, he who devised the formula, says so!

To any English socialists reading this, ask your local MP (whatever party) and your local councilor what they are doing and have already done about this and why they don't highlight this 'unfairness' rather than just bleating on about the 'cuts'.

To the rest of you, speak up about this inequitable situation!

1 comment:

  1. I can understand your concerns but I think your view is slightly short-sighted. Scotland, Northern Ireland and Wales have higher unemployment, healthcare costs and being more rural and not benefiting from economies of scale have naturally higher costs. There are national assets which reside in England which belong to the entire country such as the Financial City but these are only counted as English revenues. Much of our nation's oil resides around the coastal waters of Scotland but of course this considered a national asset.

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