‘Get rid of my formula now’

Feb 9 2008 by Adrian Pearson, The Journal

THE man responsible for a controversial funding system which sees deprived parts of the North East automatically lose out to Scotland has warned it could lead to the end of the UK.

Pressure has increased for the Government to think again about the Barnett Formula which sees Scotland get £1,500 more per head to spend on public services than England.

The formula was first used in the late 1970s by Lord Barnett, then in the Treasury, as a temporary solution to decide who gets what in a spending settlement.

But the formula was kept on and now sees cash diverted north of the border without Scotland having to prove the need for it.

This week Lord Barnett urged the Government to drop the formula and look for a fairer system.

He said: “There is an urgency about this because if something isn’t seen to be done fairly soon, people in England will start to demand separation. That would be disastrous for the UK.”

His formula has no legal standing and can be changed at any time by the Treasury.

Berwick MP Alan Beith agreed it was time for a rethink on the Barnett Formula, saying: “We in the North East have just as good a case for investment to match the money spent in the South but instead have to watch as the Government sends this funding to Scotland.

“We do not have the same built-in guarantee of funding and we lose out.”

He sits on a Justice Committee which is preparing to debate the merits of English-only votes in Parliament.

Lord Barnett said the time was right to look again at his formula.

The chairman of the Lords committee, Lord Brabazon of Tara, rejected calls for a Barnett inquiry.