Oral question asked in the House of Lords, by Lord Elis-Thomas (Crossbench). It was answered on Tuesday, 15 December 2009.

Barnett Formula

Question: Does my noble friend accept that there was indeed a general welcome for the Secretary of State’s statement in another place on 26 November? However, is my noble friend now able to take the UK Government’s thinking a little further? There has been a positive response to Gerry Holtham’s report, but surely the basic issue is this: how long will the Treasury continue to be the judge and jury in its own case? Or are the UK Government so afraid of fiscal federalism and the charge that would follow from that in other parts of the European Union, that they are not prepared to tackle the basic issue of having an objective assessment of the relative needs, as my honourable friend has indicated?

Answer: My Lords, the problem with an objective assessment is that it is difficult to achieve objectivity. As the noble Lord will recognise only too clearly, some of those who are clamouring for revaluation are not sufficiently aware of the extent to which the devolved Administrations actually benefit from the formula at present. However, serious questioning of the Barnett formula is present in both of these reports and in the House of Lords Select Committee report, and the Government will give their response to them when they have a final considered position.

Secondary information