Barnett Formula

Since the Workers of England Union’s conception we have relentlessly campaigned for the revision and eventual removal of the Barnett formula, stating that it is unfair, out-dated and disadvantages the English taxpayer. We have shown on numerous occasions that over-generous funding for Scotland has meant less funding for England. We also know that many organisations in Wales call for ‘Barnett revision’ or ‘removal’ due to the funding gap between Wales and Scotland.

CIPFA Confirms Barnett Formula “No Longer Fit for Purpose”

Yesterday the Chartered Institute of Public Finance and Accounting (CIPFA) stated that “the Barnett formula is no longer fit for purpose”. The Workers of England Union welcome the CIPFA report and hope the Coalition government listens.

We have been criticised by larger trade unions and the British political establishment for daring to say that the English taxpayer is treated unfairly due to the unequal allocation of taxes across the UK. We believe the main trade unions let their members in England down by not arguing strongly enough for parity.

Funding Disparity: England vs. Scotland

The Barnett formula favours Scotland by £1,600 per head of population. Yesterday’s CIPFA announcement is an encouraging step towards vindicating our stance. Unfortunately, we still have a long way to go in removing the formula, as the three political leaders—Cameron, Clegg and Miliband—“vowed” to keep it in place before the Scottish independence referendum.

To illustrate the unfairness to cities and counties in England, our Campaign Team has produced a table highlighting the funding difference between Scotland and your area. You’ll be surprised how much more your community would receive if funding were equal to Scotland’s. Check the figures in your area under our Campaign tab.

Support Our Campaign

Imagine: with that extra funding, local services in your area could avoid many of the cutbacks currently being implemented. We urge you to support our campaign for the removal of the Barnett formula.

• To see how much your area is underfunded, click here
• To see how much your council is underfunded, click here

Public Finance Coverage: CIPFA Submission

News and expert comment on public policy and finance

Barnett formula ‘not longer fit for purpose’, say CIPFA

The Barnett formula needs to be scrapped to ensure an equitable and sustainable distribution of public funding across the UK, a CIPFA submission to the Northern Ireland Assembly has concluded.

In evidence to the Assembly’s Finance and Personnel Committee inquiry on the formula, which is used to increase money available to devolved administrations when public spending in England rises, the Institute said distribution must be modernised.

The ratio for increases has not been revised since its creation in 1979 and is based on population rather than need, which critics say means an inequitable distribution of public money.

Submitting evidence, CIPFA’s Head of Devolved Government, Don Peebles, said that what was intended as a short-term approach has become a long-term formula but is no longer fit for purpose. “CIPFA has called for a replacement of the Barnett formula and our submission to the Northern Ireland Assembly states clearly that it must be replaced,” he said.

“Within the evidence we have given, we have suggested that a mechanism linked with tax devolution—supporting sustainable and equitable public services—should be implemented. This should be underpinned by a principles-based approach focusing on need, equity, accountability and transparency.

“CIPFA has also recommended that an independent funding commission be established to oversee and advise on methodologies and funding decisions, removing the process from the political arena to encourage more transparent and sustainable decision-making.”