Scales tip against 'patently unfair' Barnett formula

THE infamous Barnett Formula looked doomed last night as Britain's top economists were given the go-ahead to investigate whether it should finally be scrapped. The funding rules - which deliver much higher public spending in Scotland than in the poorer North-East - will be reviewed for the first time in 30 years by a House of Lords committee. Crucially, the 12-strong committee will employ leading economists to examine why the formula gives the Scots much higher funding and which parts of England are penalised. They are certain to focus on why Scotland, in the last financial year, received £9,179-per-head from the Treasury, while the North-East figure was just £8,505 - a staggering £674 less for every person. Yet, Scotland is much richer. Income-per-head north of the border was 95 per cent of the national average in 2006. In... [read full story]