CEP: The Fiscal Arrangements of the United Kingdom must be changed to establish fairness and equality between its nations

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Friday, 08, Aug 2008 12:00

‘The Barnett Formula is now reaching such a level of absurdity, and unfairness to England in favour of Scotland, that it should be scrapped at once.’ That is the message Michael Knowles representing the Campaign for an English Parliament has sent to the Chancellor of the Exchequer. ‘The latest example is the immense benefits Scotland will get out of the 2012 Olympic Games being in Britain. While the English taxpayer from Dover to Carlisle, from the Scillies to Berwick on Tweed, from the Wash to the Wirral, will be paying extra for the Olympics, north of the border Scottish ministers and people will be getting a multi-million pay day just because the games are taking place in England. That is how the Barnett formula works. 10% of whatever capital expenditure occurs in the UK is added to the UK grant to Scotland if it occurs in England. ‘Under the controversial Barnett formula millions of pounds will be sent to Scotland because Government money is being spent in London on Olympic infrastructure.’ (Source. The Journal).’

As things stand at present, even before any capital expenditure in England such as the Games and Cross Rail in North London is calculated in, Scotland is getting a terrific preferential deal out of the Barnett Formula. Each Scottish man, woman and child receives £1500 more expenditure for health, education etc from the UK Exchequer than any individual in England. That is the reason the Scottish Parliament can afford the extra benefits its people are enjoying such as free university tuition, a freeze on council tax, and free personal care for the elderly.

In 2014 Glasgow will host the Commonwealth Games. Already the Scottish Executive is negotiating with the UK Exchequer for big financial help towards what it calls ‘a lasting legacy’ of the 2014 Games. ‘We demand’ states Mr Knowles, ‘that the Chancellor, MP for Edinburgh East, and the Prime Minister, MP for Kirkaldy and Cowdenbeath, will bear in mind how unfairly taxation falls upon the people of England by reason of he Barnett Formula. We demand that Glasgow is not treated differently than Manchester was treated by them when it held the 2002 Commonwealth Games. We demand that this unfair Formula is ended whereby England pays and Scotland benefits. We demand parity between the nations of the UK.’

Contacts:

Michael Knowles.

CEP Media Unit. Tel: 01260 271139. email: michael-knowles@tiscali.co.uk