Oral question asked in the House of Lords, by Lord Elystan-Morgan (Crossbench). It was answered on Tuesday, 5 June 2007.

Public Expenditure: Scotland

Question: My Lords, in light of the fact that massive contributions have historically been made to the United Kingdom economy by Scotland and Wales and on account of their structural and economic deficiencies, will the Minister kindly give an undertaking that no review would leave either country in a worse financial situation than it is in at the moment? Might I also tempt the House to consider whether, if there is to be a successor to the Barnett formula, it should be named ““Barnett 2”” or ““Barnett revisited””?

Answer: My Lords, we have made a determined attempt to improve the ratios of expenditure between the regions in England and have had some success in bringing up to the standards of the best those which in the past have been poorly served. If we had to look an overall policy for Wales, Scotland and Northern Ireland, the same principles would obtain. As I have indicated, we are not proposing a wholesale revision. I add the obvious point that it is easier to countenance the concept of a wholesale revision than to deal with the Pandora’s box once it is opened.

Secondary information