Barnett Formula worked out on back of an envelope, says its creator

Published on Monday 7 April 2008 23:01

THE controversial Barnett Formula – which allocates spending increases to the various parts of the UK – was drawn up "almost on the back of an envelope", it emerged last night.

Lord Joel Barnett, the former Labour minister who devised the Barnett Formula in the 1970s, used an interview with Holyrood magazine to repeat his call for the formula to be reviewed. Lord Barnett said: "I have nothing against Scots but they have to examine how much money they get and why.

"The real danger in not doing anything is that people in England will begin to be so angry about it that they will do what Alex Salmond wants them to do and press for a break-up of the UK."

And he added: "All I did was put together, almost on the back of an envelope, a mechanism for allocating public expenditure between England, Scotland, Wales and Northern Ireland on the basis of population – even that was on approximate numbers."

The formula was later modified to include need and redesigned to reduce the amount of money Scotland receives over time.

That has happened, but not fast enough for some English MPs, who believe it is too favourable to Scotland.

This impression has only grown as the Scottish Executive has provided extra services for Scots – such as free care for the elderly and no tuition fees, which are not available in England.

The Prime Minister, Gordon Brown, has accepted the general need for a review of funding mechanisms but has given no details and no timescale.