SUBSIDY STUDY
Date: 13 July 2007
Issue: Vol 157, Issue 7281
Categories: News, Local government
In brief
The Barnett formula of “Scottish subsidy” which has historically given Scotland a spending advantage over England is likely to be reviewed by the House of Lords. Lord Barnett, who devised the formula in 1978—which gives those north of the border £1,500 more per head spent on them than their English counterparts—says he expects to win permission for a House of Lords committee to be set up to look at how cash is divided in the regions of the UK. The government, which has always defended the formula, indicated it might allow the review last week when Baroness Ashtal, the leader in the Lords, said she would “consider it carefully”.
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