§ 4. Joyce Quin (Gateshead, East and Washington, West)To ask the Chancellor of the Exchequer what recent representations he has received about the operation of the Barnett formula. [138327]
§ The Chief Secretary to the Treasury (Mr. Paul Boateng)My right hon. Friend the Chancellor receives periodic representations about the operation of the Barnett formula. The Government have no plans to change the formula.
§ Joyce QuinMy right hon. Friend will no doubt have seen the recent report of the Select Committee on the Office of the Deputy Prime Minister that recommended a review of the formula. The way in which the formula operates is politically indefensible on the doorsteps of voters in north-east England. Given that the formula is named after a former Labour Chief Secretary, will he not take the opportunity to introduce a new Boateng formula that is a great deal fairer to the nations and regions of the United Kingdom as a whole?
§ Mr. BoatengI must resist that temptation, although I appreciate the kind thought. I know that my right hon. Friend takes a great interest in this matter. However, while I respect her view and that of the Select Committee, I do not share her analysis. The Barnett formula is transparent and well tried. There is no consensus about alternative funding arrangements, and existing arrangements have delivered to the north-east the second highest level of identifiable public spending in England. I think that that is something to be welcomed and appreciated by all.
§ Pete Wishart (North Tayside):Has the Chief Secretary had an opportunity to look at the latest edition of the Holyroodmagazine? If he has done so, he will have found that the Secretary of State for Scotland has conceded that the Barnett formula is indeed a convergence formula. Does he agree with his right hon. Friend the Secretary of State, and does he believe that the best way of ending this futile debate about the formula would be to give the Scottish Parliament responsibility for collecting its own expenditure and to make it fully accountable for how it is spent?
§ Mr. BoatengI cannot agree with the hon. Gentleman, who knows that examination of the figures shows that Scotland has done rather well out of the Barnett formula, as spending is 20 per cent. higher in Scotland. The reality is that the formula provides Scotland with a population-based share of comparable 402 English increases. That can hardly be regarded as unfair. I would have thought that he would welcome that on behalf of his constituents.
§ Mr. Lindsay Hoyle (Chorley)Obviously, the northeast would welcome a change in the Barnett formula, but may I reassure my right hon. Friend that in the north-west we would benefit simply from its extension to cover both the north-west and north-east, so that we not only reap the same benefits, but do not end up with top-up fees?
§ Mr. BoatengMy hon. Friend is always a reassuring figure, but there is normally a sting in the tail, as on this occasion. I fear that I must resist his blandishments, too. The Barnett formula is delivering to all the regions and to the kingdom. If Conservative Members have any alternative—he Letwin-Flight formula, perhaps—we should hear about it, because it would be about slash and burn and cuts, cuts, cuts; and we are not having that.