Barnett Formula (Hansard, 15 October 2001)

§ Mr. Salmond
To ask the Chancellor of the Exchequer, pursuant to his answer of 19 July 2001,Official Report, column 425, to the right hon. Member for Gateshead, East and Washington, West, (Joyce Quin), over what period English and Scottish identifiable public spending will converge as a result of the Barnett formula; by how much 838W spending covered by the Barnett formula has converged since 1997; at what annual rate; and if he will make a statement. [6958]

§ Mr. Andrew Smith
The Barnett formula provides the devolved Administrations with population-based shares of increases in comparable spending of UK Departments. Beyond the period covered by the 2000 spending review, changes in spending will depend on the outcome of future spending reviews. Information on public expenditure was published in Public Expenditure Statistical Analyses in April 2001. Any convergence would be affected by a number of factors, such as the rate of increase of comparable UK Departments' programmes, changes in population relativities, and changes in spending in Scotland, Wales and Northern Ireland not determined by the Barnett formula.

§ Joyce Quin
To ask the Chancellor of the Exchequer on what date he expects convergence in public spending levels between Scotland and England to be obtained through the operation of the Barnett formula. [6480]

§ Mr. Andrew Smith
The Barnett formula provides the devolved Administrations with a population-based share of increases in comparable spending of UK Departments. The changes in spending for years beyond the 2000 spending review will depend on future spending reviews. Any convergence would be affected by a number of factors, such as the rate of increase of comparable UK Departments' programmes, changes in population relativities, and changes in spending in Scotland, Wales and Northern Ireland not determined by the Barnett formula.

§ Mr. Salmond
To ask the Chancellor of the Exchequer if he will estimate the additional resources that would be available to the Scottish block over each of the next three years if the Barnett formula had maintained relative spending in identifiable areas in Scotland and the rest of the United Kingdom in the same proportions as in 1997. [6959]

§ Mr. Andrew Smith
The Barnett formula provides the devolved Administrations with a population-based share of changes in planned spending in comparable UK Departments' spending. Identifiable total managed expenditure includes both devolved and non-devolved spending; the latter is not determined by the Barnett formula.