Barnett Formula: Scotland

Treasury – in the House of Commons at on 1 July 2025.

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Photo of Darren Jones Darren Jones The Chief Secretary to the Treasury

There are currently no plans to review the operation of the Barnett formula. The Barnett formula has stood the test of time because it is simple and efficient, and it provides a clear and certain outcome. It is a key part of the arrangements for pooling and sharing risks and resources across the United Kingdom.

Photo of Seamus Logan Seamus Logan Shadow SNP Spokesperson (Health and Social Care), Shadow SNP Spokesperson (Environment, Food and Rural Affairs)

We know that if the Government today pass their disgraceful, discriminatory and, some say, illegal cuts to disability support, that will almost certainly lead to a reduction in the Scottish budget as a result of the Barnett formula. That is a deliberate choice that Scottish Labour MPs will be making if they support these cuts, and for which they must answer to their constituents. Will the Chancellor or the Minister tell them, this House and, indeed, the nation exactly how many millions of pounds they will voting to take out of the pockets of disabled and vulnerable people in Scotland, many of whom voted for Labour almost a year ago?

Photo of Darren Jones Darren Jones The Chief Secretary to the Treasury

One thing I can tell the Scottish people, and indeed the House, is that it is this Labour Government who have given the largest real-terms increase in spending to the Scottish Government since devolution began—billions and billions of pounds of extra money is going to the Scottish National party Government in Holyrood. On devolved matters, it is for the SNP Government to be accountable for the delivery of public services to people in Scotland, where they are failing on everything from the NHS to welfare and the economy.

Photo of Lloyd Hatton Lloyd Hatton Labour, South Dorset

In the recent spending review, the Chancellor outlined plans for a multimillion-pound investment in essential building works at Budmouth academy in Weymouth. We welcome that new investment in local schools in our town, and it will enable Budmouth academy finally to upgrade its school buildings. Looking ahead, will the Chancellor work with me to speedily deliver the new investment and ensure that Budmouth academy gets a richly deserved upgrade as soon as possible?

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

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

Chancellor

The Chancellor - also known as "Chancellor of the Exchequer" is responsible as a Minister for the treasury, and for the country's economy. For Example, the Chancellor set taxes and tax rates. The Chancellor is the only MP allowed to drink Alcohol in the House of Commons; s/he is permitted an alcoholic drink while delivering the budget.

Minister

Ministers make up the Government and almost all are members of the House of Lords or the House of Commons. There are three main types of Minister. Departmental Ministers are in charge of Government Departments. The Government is divided into different Departments which have responsibilities for different areas. For example the Treasury is in charge of Government spending. Departmental Ministers in the Cabinet are generally called 'Secretary of State' but some have special titles such as Chancellor of the Exchequer. Ministers of State and Junior Ministers assist the ministers in charge of the department. They normally have responsibility for a particular area within the department and are sometimes given a title that reflects this - for example Minister of Transport.