English Job Losses Due to Unfair Funding

The ongoing public sector job losses in Coventry highlight the unfair funding across English counties. According to HM Treasury’s Public Expenditure Statistical Analysis 2014, in 2012/2013:

UK Public Spending per Head Comparison (2012/2013)

• UK average: £8,788
• England: £8,529 (3% below the UK average)
• Scotland: £10,152 (16% above the UK average)
• Wales: £9,709 (10% above the UK average)
• Northern Ireland: £10,876 (24% above the UK average)
• West Midlands: £8,498 (UK average £8,788)

Coventry’s Funding Shortfall

With a population of 316,900 (2011 Census), Coventry’s public spending breaks down as follows:

• Based on UK average per head: £2,702,840,100
• Based on West Midlands per head: £2,693,016,200
• Funding gap: £9,823,900 less than the UK average allocation
• If funded equally with Scotland: £3,217,168,800
• Potential gain: £524,152,600 more than current spending

Warwickshire’s Potential Revenue Increase

Warwickshire, with a population of 545,474 (2011 Census), would receive:

• UK average funding: £4,652,347,746
• West Midlands funding: £4,635,438,052
• Funding gap: £16,909,694 less than UK average
• If funded like Scotland: £5,537,652,048
• Potential gain: £902,213,996 more than current spending

The Barnett Formula’s Impact

The Barnett formula currently ensures higher per head spending in Scotland at the direct expense of England’s counties. If Warwickshire received the same per head allocation as Scotland, it would gain nearly £902 million annually—enough to ease austerity pressures on local NHS services and councils.

Call for an English Government

Eddie Bone, Campaign Director for the Workers of England Union, stated:

“An English Government with an English First Minister could work in the lead up to the general election to redress this imbalance—ensuring that the people of England receive a fair share of the tax money they contribute.”

City Regions are not the answer, as they tend to favour urban centres and leave rural areas—such as parts of Warwickshire—underfunded.

Further Reading

• Bradford faces massive cuts due to unfair funding for English councils
• Greater transparency within the trade partnership
• More on English job losses due to unfair funding