§ Mr. SwinneyTo ask the Chancellor of the Exchequer if he will list(a) the current formula for the determination of Scottish block expenditure, (b) each area of English expenditure to which it applies, (c) the changes that have been made to the formula since 1978 and (d) the level of Scottish block expenditure (i) planned, (ii) forecast and (iii) outturn, in each year between 1978–79 and 1997–98 at current and constant prices; and what plans he has to review the formula. [4218]
§ Mr. Darling[holding answer 19 June 1997]: The existing Block arrangements are governed by the Barnett formula established in 1978.
The Scottish Block changes by 10.66 per cent. of any changes made to provision for analogous English programmes in the course of the public expenditure survey and 10.06 per cent. of any changes to provision for analogous programmes which cover England and 180W Wales. The Block covers all expenditure by the Scottish Office and associated Departments except for that on Agriculture and Fisheries and on Nationalised Industries. The areas of comparable English, or English and Welsh, expenditure are: industry enterprise and training; roads and transport; housing; other environmental services; law, order and protective services; education and sport; arts and libraries; health; social work services; other public services; central government support to local authorities.
Since the introduction of the Block the only significant change to the 1991 population based formula was made in 1992 to reflect the 1991 population Census.
The Government will set out its proposals for the future financing of public expenditure in Scotland under devolution, in a White Paper which will be published before the recess.
Information on the Scottish Block from 1985–86 is contained in the Scottish Office Departmental Reports published since 1991. Information for earlier years is contained in the Scottish Chapter in Part 2 of the Public Expenditure White Papers. (It will be noted that the composition of the Scottish Block has changed over time and that the price bases are different).