Barnett Formula faces threat from new inquiry

By Andrew Porter, Political Editor A new committee is to investigate whether the controversial rules that govern how money is awarded by the Treasury to Scotland and the regions should be scrapped The Barnett Formula - which has been attacked for its "unfair" distribution of money - will be the subject of an inquiry by a powerful Lords Committee. The Treasury mechanism for distributing public spending across the UK has given Scotland per capita spending on services £1,500 higher than England. Lord Barnett, who devised the formula 30 years ago as a temporary measure, described the inquiry as the "biggest threat to its existence" since it was introduced in 1978. The 12-strong committee will employ leading economists to examine why the formula gives Scotland higher funding than other parts of the country. Politicians in the... [read full story]