Barnett Formula

Oral Answers to Questions — Scotland – in the House of Commons at 12:00 am on 8 May 2001.

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Photo of Alex Salmond Alex Salmond Scottish National Party, Banff and Buchan 12:00, 8 May 2001

What discussions she has held with the Secretary of State for the Environment, Transport and the Regions on the Barnett formula. [159292]

Photo of Mrs Helen Liddell Mrs Helen Liddell Secretary of State, Scottish Office, The Secretary of State for Scotland

I have regular discussions with my right hon. Friend the Secretary of State for the Environment, Transport and the Regions, the Deputy prime minister, on a variety of matters.

Photo of Alex Salmond Alex Salmond Scottish National Party, Banff and Buchan

Does not the Secretary of State find it ironic that, at a time when she is accusing the Tory party of wanting to cut £8 billion of public spending, the Deputy prime minister is aiming to reduce spending in Scotland by £1,000 a head? Even London brokers say that Scotland's surplus of revenue over expenditure comes to £100 million a month. Should not the Scottish Parliament therefore have control over revenue, rather than being at the mercy of an anti-Scottish cabal in the Cabinet?

Did not the Deputy Prime Minister say that the Barnett formula was not set in stone, and forecast blood on the carpet? Why was No. 10 so anxious to say that right hon. Gentleman was not talking about the Barnett formula, if not because of the anxiety of Labour Members to keep the issue quiet until the election is safely over?

Photo of Mrs Helen Liddell Mrs Helen Liddell Secretary of State, Scottish Office, The Secretary of State for Scotland

One thing that one can say with certainty is that the hon. Gentleman is never happier than when he is whingeing for Scotland. This Government have no plans to change the Barnett formula, and we have delivered £8.5 billion more in public expenditure for Scotland. The hon. Gentleman's party's plans for Scotland would mean a reduction of about £500 million in expenditure on health, £500 million less expenditure on local authorities and £500 million less for other services such as transport, housing and economic development. The health service in Scotland has benefited to the tune of more than £400 million. The SNP's plans for Scotland would have meant an increase in health expenditure of a puny £38 million. We would take the hon. Gentleman much more seriously—

Photo of Michael Martin Michael Martin Speaker of the House of Commons

Order. I ask the right hon. Lady to sit down.

Photo of Dominic Grieve Dominic Grieve Shadow Minister (Scotland)

If the right hon. Lady is right in her view of the firmness of the Government in respect of the Barnett formula, will she explain why, when I asked her Department in writing on 11 January about its intentions towards the formula, it took two and a half months to deliver the completely anodyne reply that the Government supported the retention of the formula? Why was there that delay if the Government were not considering scrapping it?

Photo of Mrs Helen Liddell Mrs Helen Liddell Secretary of State, Scottish Office, The Secretary of State for Scotland

I was not in the Department on 11 January. We have discussed the matter twice at Question Time—perhaps on occasions when the hon. Gentleman was not here.

Photo of Dominic Grieve Dominic Grieve Shadow Minister (Scotland)

As usual, the right hon. Lady is less than frank about the position. Why did it take so long to answer the question? Is not the reality that the Government knew very well on 11 January that they were considering scrapping the formula and were trying to put that forward in a way that might be presentable? Would the Government not be reneging on a key commitment that they made in the past by scrapping the formula, which would be part of the complete dissolution of this country that is being brought about, through the agency of the Deputy prime minister, as part of the regional policy?

Photo of Mrs Helen Liddell Mrs Helen Liddell Secretary of State, Scottish Office, The Secretary of State for Scotland

I find it interesting that the hon. Gentleman's colleague Sir Malcolm Rifkind made it clear that he could not guarantee maintaining spending in Scotland; this was the man who said that the poll tax was a very good experiment for Scotland.

The Government have no plans to change the Barnett formula and have increased public expenditure in Scotland by £8.5 billion. The Conservative party would cut £24 million from every Constituency in Scotland if they were elected.

Barnett Formula

An economic mechanism used by the Treasury to adjust automatically the amounts of public expenditure allocated to Northern Ireland, Scotland and Wales, to reflect changes in spending levels allocated to public services in England, England and Wales or Great Britain as a whole.

See http://en.wikipedia.org/wiki/Barnett_formula

Secretary of State

Secretary of State was originally the title given to the two officials who conducted the Royal Correspondence under Elizabeth I. Now it is the title held by some of the more important Government Ministers, for example the Secretary of State for Foreign Affairs.

Barnett formula

An economic mechanism used by the Treasury to adjust automatically the amounts of public expenditure allocated to Northern Ireland, Scotland and Wales, to reflect changes in spending levels allocated to public services in England, England and Wales or Great Britain as a whole.

See http://en.wikipedia.org/wiki/Barnett_formula

Deputy Prime Minister

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The post has existed intermittently and there have been a number of disputed occasions as to whether or not the title has actually been conferred.

More from wikipedia: http://en.wikipedia.org/wiki/Deputy_Prime_Minister_of_the_United_Kingdom

Prime Minister

http://en.wikipedia.org/wiki/Prime_Minister_of_the_United_Kingdom

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They were opposed by Tories, from the Irish word toraidhe (literally, "pursuer," but commonly applied to highwaymen and cow thieves). It was used — obviously derisively — to refer to those who supported the Crown.

By the mid 1700s, the words Tory and Whig were commonly used to describe two political groupings. Tories supported the Church of England, the Crown, and the country gentry, while Whigs supported the rights of religious dissent and the rising industrial bourgeoisie. In the 19th century, Whigs became Liberals; Tories became Conservatives.

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