Public Expenditure

Question

Whilst we recognise the Barnett formula is not perfect, all allocation systems have strengths and weaknesses. The Barnett formula is simple, efficient and provides a clear and certain outcome. For this reason, it has stood the test of time.

The Barnett formula ensures the same change in funding per person across the whole of the UK, while the underlying baseline funding reflects that needs are higher in Scotland, Wales and Northern Ireland. The devolved administrations are receiving over 20% more funding per person than equivalent UK Government spending in other parts of the UK.