Govangirl wrote:Horse, under the Barnett Formula,the annual Westminster subsidies to Scotland will disappear and last year this amounted to £11.3 billion. This is a £2,200-per-person subsidy. The Holyrood Parliament in Edinburgh will be forced to make severe cuts in public services without this subsidy.
As far as I understand it, the Barnett formula is used to allocate UK public money. That money is raised through the various taxes on all the residents of the UK, not just England. As a result of the formula, Scottish residents currently receive over £1400 per head more than their English counterparts and the figure is even higher for Northern Ireland residents.
The Barnett formula was originally introduced to bring the wealth of Wales, Scotland and Northern Ireland into line with England. It was based on population figures and in Scotland it recognised the greater rurality and poor health and housing as key factors in Scotland's lower per capita income figures.
As time has progressed, this has led to a disparity especially in recent years as public money is allocated by country and is not based on need. For instance, the North of England is a much poorer region than the borders of Scotland but the Barnett formula doesn't take this into account. I can understand why those in England feel they are getting a raw deal with the Barnett formula but it is up to government ministers to change it or scrap it.
Govangirl, if the Barnett formula disappeared, Scotland would still get an allocation of public money - it wouldn't get nothing. Also, when you talk of Scotland having benefits that England doesn't have, it is up to the Scottish Executive to spend their allocated money where they think it will have the most benefit. If that means free eye tests, etc then so be it.
Perhaps the fairest thing would be for Scotland to collect and keep all the proceeds of income tax, corporation tax and VAT raised in Scotland, and to take a share of North Sea oil revenues (given that most of the oil is off Scottish shores anyway). I'm pretty sure all spending by the devolved government north of the border could be financed this way. That would make the Scottish Executive much more responsible for their public spending and get away from being seen as "going cap-in-hand" to Westminster for funds.
Malky