Letter: Basic arithmetic

Fred Forrester (Letters, 19 January) is wrong. The Barnett formula is a problem, not a solution.

Barnett applies to our block grant. In the baseline we had about 20 per cent more per head to spend than England. We receive a population-based ratio (10 per cent) of any extra England receives year-on-year for inflation.

But we need 12 per cent to maintain services at the 20 per cent lead level. So there is a squeeze on our funding.

If England receives 5 per cent enhancement, that is worth only 4 per cent to Scotland. So the squeeze is 1 per cent. On a block grant of, say, 26 billion, we lose 260 million each year.

The latest assessment of our per capita lead over England is 5 per cent, so the reduction would then cease, if anyone notices when that point is reached.

It is all a matter of Primary 7 arithmetic - all that is required is the back of an envelope. We need fiscal autonomy to enable us to achieve an optimum level of spending on the public sector and to manage our economy in a mature manner.

Douglas R Mayer

Thomson Crescent

Currie, Midlothian