North pays for Scots gold
Jul 30 2008 by Adrian Pearson, The Journal
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Under the controversial Barnett formula millions of pounds will be sent to Scotland because Government money is being spent in London on Olympic infrastructure.
But while the funding system means an Olympic-size payout for Scotland, for the North East it means another bill as the Government orders all cities to prepare to celebrate the build-up to the 2012 Games.
When the Olympic flame is handed over from China to Britain this summer, Newcastle and other English cities are expected to find a way to celebrate, but have received no financial help from the Government.
Yet while Newcastle culture bosses have decided to offer free swimming for the day to celebrate the Games, they have been told North East taxpayers must fund it themselves.
The cost of the event has not yet been set, but with many councils in the region expected to follow suit, the hand-over celebrations will probably run into several thousand pounds.
Coun Pauline Allen, responsible for Newcastle’s cultural work, said the Government was not prepared to help fund celebrations. “The cultural Olympiad is something that we were asked to look at by the Department for Culture, Media and Sport, and it is something we are happy to get behind.
“But we have been told there are no funds available for this work, and there is some doubt over whether we can even use the Olympic logo. So, we’re stuck with these expensive celebrations and no Government help. On one hand, the Government is limiting the amount of money it gives councils and on the other, expecting us to do more.
“The funding for the Games has been a disaster, they have not got to grips with the issue and as a result we are having to dip into our funds to help.
“We’re happy to offer the day’s free swimming – we just wish the Government was happy to support us.”
And as Newcastle and other authorities look again at already tight budgets, across the border Scottish spending chiefs are expecting an easier time as they consider the money available to them as a result of the Barnett formula.
Scotland may claim up to £165m under the formula – a system used by the Treasury to distribute public expenditure between Scotland, Wales and Northern Ireland. Any large public sector infrastructure work in England would normally prompt an extra payment.
The Scottish Executive said it was making the bid to regain cash diverted from it to the Games. A Scottish Government spokesman said: “The Scottish Government is continuing to make representations to the Treasury on this issue.
“In addition to the consequentials Scotland, Wales and Northern Ireland are entitled to from the regeneration of London’s East End, over £150m was lost to good causes in Scotland when lottery funding was diverted to the London Olympics.
“It is entirely reasonable to demand that a similar amount should be returned to help deliver a lasting legacy of the Glasgow 2014 Commonwealth Games.”
A spokesman for the DCMS said that while there was no specific funding available for the hand-over celebrations, the Government had increased arts funding generally last year.
“Overall funding has increased. We think the hand-over and the Cultural Olympiad is a great opportunity for regions throughout the country, and particularly in the North East, to showcase their cultural offer at a time when the eyes of the world will be on the UK.”
