HC Deb 27 April 2004 vol 420 cc738-9
4. David Taylor (North-West Leicestershire) (Lab)

What recent discussions he has had with the Chancellor of the Exchequer about the options for reform of the Barnett formula. [167030]

The Secretary of State for Scotland (Mr. Alistair Darling)

None.

David Taylor

Given the £10 million a day Scottish public spending advantage over comparable English regions such as the east midlands, and the recent comments by my right hon. Friend the Minister for Local and Regional Government that the case for reconsidering the basis for funding is getting stronger all the time, does my right hon. Friend the Secretary of State agree that Scotland should get the Chancellor's cash only on a needs basis or should have total fiscal autonomy? The days of building castles in the air at Holyrood with other people's taxes must end, and soon.

Mr. Darling

No, I do not agree with my hon. Friend. He might wish to reflect that thanks to this Government, whom he supports on occasions, I think, public expenditure has risen in the east midlands by 30 per cent., and that has enabled, for example, the employment of more teachers, more nurses, more doctors and more police. The Government have increased public expenditure across the piece. As for the Barnett formula, the Chancellor and the Chief Secretary have made it clear that they do not have any proposals to amend it. Instead, we are concentrating on addressing some of the disparities and the historic underinvestment in areas such as the one that my hon. Friend mentioned. As for fiscal autonomy, he ought to understand that it is Natspeak for separation.

Sir Nicholas Winterton (Macclesfield) (Con)

Will the Secretary of State, who is always rational in what he says, accept that Lord Barnett, the initiator of the Barnett formula, believes that it should now be phased out? Does the right hon. Gentleman accept that those of us who represent English boroughs and counties such as Macclesfield and Cheshire are concerned that the population we represent get 20 per cent. less per head than the resources allocated to Scotland? Does he further accept that, bearing in mind the fact that that enables Scotland to provide free tuition and free residential and nursing care, whereas we cannot provide those in England, it is really stretching the patience of those who live in England.

Mr. Darling

On the question of tuition fees, of course, if Parliament approves the measures currently before the House, substantial advantages will be provided to students living in England that were not previously available. I cannot remember whether the hon. Gentleman supported his party's opposition to those measures, but he should bear that in mind. Expenditure in the north-west, including the hon. Gentleman's constituency, has also risen by more than 30 per cent. The hon. Gentleman was nice about me, so I shall be nice about him. Throughout my 10 years in opposition, I was always taken by the fact that he spoke as much against his own Government as about other matters. He sees the need for public expenditure and I think that he would agree that increasing it by 30 per cent., with all that that entails for his constituency and others in the north-west, is a good thing.

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