Barnet Agreement

Scotland and Wales will not receive any additional funding due to yesterday`s agreement between the Conservative government and the Democratic Unionist Party (DUP). Some felt that, under the Barnett formula, Scotland and Wales would indirectly benefit from the promise of financial support for Northern Ireland. The government has made it clear that the Barnett formula does not apply in this case. Spending in England is not changed by the agreement with the DUP, so the guide literally implies that the formula does not apply. The formula is not defined in any legislation. It is an internal cash flow method which, over time, has become an agreement and can theoretically be modified at any time by the UK Government (although it is now part of the Scottish Government`s budget framework agreement1). Hello Gordon — there is a kind of formatting problem on the site. Images are not displayed in Mozillla Firefox, a click on „Show the Image“ leads to a message on a fake MIME type. The Barnett formula is an administrative mechanism used by the Department of Finance to determine annual changes to the subsidy from Scotland, Wales and Northern Ireland, reflecting changes in public service spending in England, England and Wales or the United Kingdom. The formula is not enshrined in law, although it has been adopted as a convention by successive UK governments since its development in 1978.

The Barnett formula was introduced as a funding mechanism containing a mathematical formula to reduce Scottish funding compared to England. To understand why it exists and how it should reduce Scotland`s public spending, we need to understand Scotland in the 1970s, when it was first introduced. A needs-based solution has been proposed as fairer, especially considering that the territories of England are not taken into account or compared to the three de-decentralized nations of the United Kingdom. The numbers are linked to a page with over 400 sources and links to the reports we used to get the data used in the blog — they usually appear at the end of sentences, but it`s a bit complicated, because it`s at the beginning of the list.