Fair Shares? Barnett and the politics of public expenditure

Article

The Barnett formula - the Treasury mechanism used to fund the devolved administrations (DAs) in Scotland, Wales and Northern Ireland - is now the subject of widespread political debate across the four nations of the UK. To help inform these debates this paper evaluates the way the Barnett formula works.

The Barnett formula - the Treasury mechanism used to fund the devolved administrations (DAs) in Scotland, Wales and Northern Ireland - is now the subject of widespread political debate across the four nations of the UK.

In particular, there are growing concerns that the current disparities in funding across the UK are not fair and that this is creating a tension between the four nations, especially between England and Scotland, which could serve to undermine the Union unless addressed.

To help inform these debates this paper evaluates the way the Barnett formula works and asks:

  • Does Barnett deliver an equitable and fair distribution of spending?
  • Does Barnett provide for efficient and accountable spending?
  • Do the public think the distribution of public spending across the UK is fair? Is Barnett procedurally fair?

Related items

  1. A photo of a field of solar panels with a line of trees and a sunset sky behind it

    The Europe agenda: Energy and climate

    A redefined relationship with Europe is the most direct path to the UK's climate and energy goals.
  2. Sad young woman sitting on the window

    The loneliest generation: What it is like to grow up in England today

    Connection should be the fabric that binds society together. But today’s young people have never felt more disconnected. 
  3. Man Writing Code on Desktop Computer With Multiple Monitors Set Up and a Laptop in Creative Office

    Bottleneck Britain: How digital competition could power UK growth and sovereignty

    Artificial intelligence could be the UK’s biggest economic opportunity in a generation, but only if its gains are spread across the economy rather than pooled within a handful of companies.