The Institute for Public Policy Research (IPPR) Fair Shares report finds that the Barnett Formula benefits Scotland comparative to a number of English regions and Wales even when per capita income is taken into account.
However, it does not produce a final comparison which also takes into account Scotland’s poor health record and the geographical difficulties associated with public service delivery. This would give a fairer assessment of the extent to which Barnett favours Scotland.
The STUC believes that it would be unwise to move too hastily in the direction of abolishing the Barnett Formula but believes the IPPR’s alternative – a mixed formula for funding – merits serious consideration. Mixed funding for devolved government would mean increasing revenue raising powers but retaining a block grant based on need.
STUC Deputy General Secretary Dave Moxham said:
"The IPPR North report Fair Shares, Barnett and the politics of public expenditure is a valuable contribution to the debate on Scotland’s constitutional future and politicians who are committed to 'listening' should not be dismissing it's recommendations out of hand."