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 mother and child from behind looking out of a window

    Restoring security: Understanding the effects of removing the two-child limit across the UK

    The government’s decision to lift the two-child limit marks one of the most significant changes to the social security system in a decade.
  2. A group of healthcare professionals sitting in a staff common room in a hospital in Newcastle

    Building a healthier, wealthier Britain: Launching the IPPR Centre for Health and Prosperity

    Following the success of our Commission on Health and Prosperity, IPPR is excited to launch the Centre for Health and Prosperity.
  3. The Home Office building in London

    A ‘paradigm shift’ in asylum and immigration policy?

    In 2019, a package of asylum reforms known as the ‘paradigm shift’ was passed by a broad party consensus in the Danish parliament.