Policy Press
Fourteen Barnett plus needs: the regional spending challenge in Britain
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Peter Jones
Abstract
Business organisations are increasingly aware of the issue. West Midlands First, an umbrella group of business organisations representing the region, has told ministers that they “believe it is unfair that Scotland Wales and Northern Ireland receive a higher per capita spend” and that “English regions are disadvantaged by the Barnett spending formula” (Guthrie, 2000). Even in Wales, which, from an English viewpoint, is thought to get a relatively good deal, there is a demand for a review of the Barnett Formula. In a report on social exclusion, the Commons’ Select Committee on Welsh Affairs said: “The Barnett Formula should be replaced with a formula for public funding which accurately reflects the levels of need in the various parts of the UK” (House of Commons, 2000, para 118). These pressures have been recognised by some in government. John Prescott, the Deputy Prime Minister, has said that the Barnett Formula is not “written in stone” and should be reviewed, perhaps alongside a review of local government finance in 2001. His comments also implied that the review would cover disparities in English regional spending, and that there would be “blood on the carpet”, as there would be losers as well as winners (Prescott quoted in Hetherington, 2001). Against that, the Prime Minister, Tony Blair, and the Chancellor, Gordon Brown, said during the 2001 General Election campaign that there would be no change to the Barnett Formula.
Thus, it appears that a genie is struggling to get out of the bottle. It is equally clear that moves to English regional government, due to be given momentum by a White Paper expected in 2002, will uncork the bottle.
Abstract
Business organisations are increasingly aware of the issue. West Midlands First, an umbrella group of business organisations representing the region, has told ministers that they “believe it is unfair that Scotland Wales and Northern Ireland receive a higher per capita spend” and that “English regions are disadvantaged by the Barnett spending formula” (Guthrie, 2000). Even in Wales, which, from an English viewpoint, is thought to get a relatively good deal, there is a demand for a review of the Barnett Formula. In a report on social exclusion, the Commons’ Select Committee on Welsh Affairs said: “The Barnett Formula should be replaced with a formula for public funding which accurately reflects the levels of need in the various parts of the UK” (House of Commons, 2000, para 118). These pressures have been recognised by some in government. John Prescott, the Deputy Prime Minister, has said that the Barnett Formula is not “written in stone” and should be reviewed, perhaps alongside a review of local government finance in 2001. His comments also implied that the review would cover disparities in English regional spending, and that there would be “blood on the carpet”, as there would be losers as well as winners (Prescott quoted in Hetherington, 2001). Against that, the Prime Minister, Tony Blair, and the Chancellor, Gordon Brown, said during the 2001 General Election campaign that there would be no change to the Barnett Formula.
Thus, it appears that a genie is struggling to get out of the bottle. It is equally clear that moves to English regional government, due to be given momentum by a White Paper expected in 2002, will uncork the bottle.
Chapters in this book
- Front Matter i
- Contents iii
- List of tables and figures v
- Acknowledgements vii
- List of contributors ix
- Introduction 1
- Regional government in England: reviewing the evidence base 11
- New Labour and the evolution of regionalism in England 25
- Yorkshire (and the Humber) 45
- Institutional collaboration in the West Midlands region 63
- England’s North West 81
- The South West 95
- Regionalism in the East of England 109
- The South East region? 125
- Regionalism in North East England 137
- Regional strategy development in the East Midlands 147
- The problem of regional governance 159
- Elected regional government: the issues 173
- Barnett plus needs: the regional spending challenge in Britain 187
- Conclusion: prospects for regionalism 207
- Index 219
Chapters in this book
- Front Matter i
- Contents iii
- List of tables and figures v
- Acknowledgements vii
- List of contributors ix
- Introduction 1
- Regional government in England: reviewing the evidence base 11
- New Labour and the evolution of regionalism in England 25
- Yorkshire (and the Humber) 45
- Institutional collaboration in the West Midlands region 63
- England’s North West 81
- The South West 95
- Regionalism in the East of England 109
- The South East region? 125
- Regionalism in North East England 137
- Regional strategy development in the East Midlands 147
- The problem of regional governance 159
- Elected regional government: the issues 173
- Barnett plus needs: the regional spending challenge in Britain 187
- Conclusion: prospects for regionalism 207
- Index 219
