What is the Barnett formula?

Scotland's economy

The Politics of Scotland’s Public Finances

Stephen Richard — Sat, 02 Oct 2021 17:46:49 +0000

The Politics of Scotland’s Public Finances

Primary Author or Creator

David Heald

Stephen Richard Sat, 10/02/2021 - 18:46

Additional Author(s) / Creators

Michael Keating,

Alternative Published Date

2020

Category

IN: The Oxford Handbook of Scottish Politics

Type of Resource

Academic Paper

Fast Facts

The early operation of the 2016 Scottish Fiscal Framework and the divergence of UK and Scottish income tax rates highlights the practical issues of devolved tax policy in the context of UK fiscal centralization.

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Politics and fiscal mechanics play interwoven roles in the public finances of devolved Scotland. Asymmetric devolution, in the context of divergent economic performance and relative population size and growth rates, has contributed to the longevity of the Barnett formula. Though criticized for either overfunding or underfunding Scotland, its resilience stems from its role as political convention in reducing overt conflict, and from maintaining the expenditure autonomy of the Scottish Parliament. The low level of self-financing from devolved taxes stimulated allegations that the Parliament lacked accountability and fiscal responsibility. Extended taxation powers advanced through the cautious Calman Commission to the rushed Smith Commission, and were driven by imperatives for a ‘counter-offer’ after the 2014 Independence Referendum. The early operation of the 2016 Scottish Fiscal Framework and the divergence of UK and Scottish income tax rates highlights the practical issues of devolved tax policy in the context of UK fiscal centralization. These developments have been driven by changes in Scottish political circumstances rather than by changes in fiscal fundamentals.

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Resource Address (URL)

https://www.oxfordhandbooks.com/view/10.1093/oxfordhb/9780198825098.001.0001/ox…

Keywords

Devolution

Taxation

Language English

Ambiguous no more: Time to de-mystify the Barnett Formula

Stephen Richard — Sat, 02 Oct 2021 17:39:26 +0000

Ambiguous no more: Time to de-mystify the Barnett Formula

Primary Author or Creator

J. R. Cuthbert

Stephen Richard Sat, 10/02/2021 - 18:39

Alternative Published Date

2020

Category

https://www.euppublishing.com/doi/full/10.3366/scot.2020.0333

Type of Resource

Academic Paper

Length (Pages, words, minutes etc...)

19pp

Fast Facts

More details

Scottish Affairs, vol 29, issue 3

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Resource Address (URL)

Keywords

Language English

The Barnett Formula

Stephen Richard — Sat, 02 Oct 2021 17:28:38 +0000

The Barnett Formula

Primary Author or Creator

Matthew Keep

Stephen Richard Sat, 10/02/2021 - 18:28

Additional Author(s) / Creators

House of Commons Library

Date Published

Fri, 05/28/2021 - 12:00

Category

https://researchbriefings.files.parliament.uk/documents/CBP-7386/CBP-7386.pdf

Type of Resource

Briefing paper

Fast Facts

The Barnett formula calculates the annual change in the block grant. The formula doesn’t determine the total size of the block grant just the yearly change. For devolved services, the Barnett formula aims to give each country the same pounds-per-person change in funding.

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House of Commons Library Briefing PaperNumber 7386, 28 May 2021

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Keywords

Language English

Barnett formula

Stephen Richard — Sat, 02 Oct 2021 17:23:25 +0000

Barnett formula

Primary Author or Creator

Wikipedia

Stephen Richard Sat, 10/02/2021 - 18:23

Alternative Published Date

2021

Category

https://en.wikipedia.org/wiki/Barnett_formula

Type of Resource

Wikipedia

Fast Facts

The Barnett formula is a mechanism used by the Treasury in the UK to automatically adjust the amounts of public expenditure allocated to Northern Ireland, Scotland and Wales to reflect changes in spending levels allocated to public services in England. The formula applies to a large proportion, but not the whole, of the devolved governments' budgets.

Resource Address (URL)

Keywords

https://www.businessforscotland.com/the-barnett-formula-myth-destroyed-it-does-…

Devolution

Language English

The Barnett Formula Myth Destroyed – It does not subsidise Scotland

Stephen Richard — Sun, 12 Sep 2021 06:33:32 +0000

The Barnett Formula Myth Destroyed – It does not subsidise Scotland

Primary Author or Creator

Gordon Macintyre-Kemp

Stephen Richard Sun, 09/12/2021 - 07:33

Additional Author(s) / Creators

Business for Scotland

Alternative Published Date

2019

Category

Economy

Type of Resource

Assessment report

Fast Facts

The Barnett Formula will withhold from Scotland, over the five years covered by the spending review, enough money to have hired approximately 7,955 additional NHS medical professionals. That is not a bonus – it’s a smoke and mirrors mechanism that aims to reduce the Scottish Government’s spending power in real terms.

Resource Address (URL)

Keywords

Scottish National Health Service