The Barnett formula is a mechanism used by the Treasury in the United Kingdom 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, Scotland and Wales, as appropriate. The formula applies to a large proportion, but not the whole, of the devolved governments' budgets − in 2013–14 it applied to about 85% of the Scottish Parliament's total budget.[1]
The formula is named after Joel Barnett, who devised it in 1978[2] while Chief Secretary to the Treasury, as a short-term solution to resolve minor Cabinet disputes in the runup to planned political devolution in 1979.
The Barnett formula is said to have "no legal standing or democratic justification",[3] and, being merely a convention, could be changed at will by the Treasury. Barnett himself later called a 2014 pledge to continue using it a "terrible mistake".[4] In 2009, the House of Lords Select Committee on the Barnett Formula concluded that "the Barnett Formula should no longer be used to determine annual increases in the block grant for the United Kingdom's devolved administrations... A new system which allocates resources to the devolved administrations based on an explicit assessment of their relative needs should be introduced."[5]
During the 2014 Scottish independence referendum, the Barnett formula came to widespread attention given Scotland's higher levels of public expenditure.[2]
^Barnett Formula definition in Scottish Draft Budget 2013–14 www.scotland.gov.uk
^ ab"What is the Barnett formula?". Telegraph.co.uk. 16 April 2015. Retrieved 13 October 2016.
^Timothy Edmonds, The Barnett Formula, Economic Policy and Statistics Section, House of Commons Library, Research Paper 01/108, 30 November 2001, pp 10–13
^"My funding formula for Scotland is a 'terrible mistake', Lord Barnett admits". Telegraph.co.uk. 16 September 2014. Retrieved 13 October 2016.
^HoL Select Committee on the Barnet Formula, Summary, paragraphs 4 & 6, publications.parliament.uk
The Barnettformula is a mechanism used by the Treasury in the United Kingdom to automatically adjust the amounts of public expenditure allocated to Northern...
late 1970s, he devised the BarnettFormula that allocates public spending in Scotland, Wales and Northern Ireland. Barnett was born in Manchester, the...
Agreements/Treaties Anglo-Irish Treaty Good Friday Agreement Budget Barnettformula Block grant Constitution of the United Kingdom Reserved and excepted...
Office of the Advocate General for Scotland Scotland Office Budget Barnettformula Block grant Taxation Constitution of the United Kingdom Proposed Devo-max...
Agreements/Treaties Anglo-Irish Treaty Good Friday Agreement Budget Barnettformula Block grant Constitution of the United Kingdom Reserved and excepted...
Agreements/Treaties Anglo-Irish Treaty Good Friday Agreement Budget Barnettformula Block grant Constitution of the United Kingdom Reserved and excepted...
2007). "Study finds no benefit in fiscal autonomy as McCrone calls time on Barnett". The Scotsman. Edinburgh. Retrieved 5 January 2016. "'Billions needed'...
introduce "extensive new powers" by the timetable suggested and that the Barnettformula of public funding would be continued. A principal issue in the referendum...
& Wales: In 1971, the last census before the Goschen formula was succeeded by the Barnettformula in 1978, Scotland's population (5.24m) was down to only...
under the Barnettformula, the UK Exchequer returned a block grant of £26.8 billion of Scottish taxpayers' money to the fund. BarnettFormula Calman Commission...
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the Northern Ireland Assembly has been determined through the BarnettFormula. This formula determines the overall budget of the devolved parliaments for...
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receives a budget allocation from the UK Government determined by the Barnettformula, which makes up roughly 80% of the Welsh budget. The remaining 20%...
Banknotes Bank of England Governor of the Bank of England UK-wide Taxation Barnettformula UK Budget Company law Competition and Markets Authority Department...
Agreements/Treaties Anglo-Irish Treaty Good Friday Agreement Budget Barnettformula Block grant Constitution of the United Kingdom Reserved and excepted...
Wales, it means that devolved authorities are entitled to less of the BarnettFormula, when funding is increased to the devolved administrations in proportion...
Orkney, Shetland and the Western Isles – Status of the Scottish islands Barnettformula – Share due to devolved administrations Devolved, reserved and excepted...
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