Barnett: Take my name off Formula.
Byline: By Paul Linford and David HiggersonThe man behind the funding system which costs the North-East pounds 1.3bn a year, last night called for his name to be removed from its title.
Labour Peer Lord Barnett said the Barnett Formula was an "embarrassment" to him. The Former Treasury Minister invented the controversial formula under which Scotland receives pounds 537 per head more in public spending than the North-East, leading to a pounds 1.3bn funding gap.
Despite being the brains behind the formula Lord Barnett has repeatedly
demanded it be scrapped because it is unfair to the English regions.
Yesterday he told fellow peers that if the Government won't abolish it, they should change its name so that he is no longer associated with it.
His comments came as pro-Regional Assembly activists launched their campaign for a `yes' vote in this year's referendum, arguing such a body is the best way of getting more cash from Whitehall.
In a Lords debate, Lord Barnett asked Government whip Lord McIntosh if he could ask his ministerial colleagues to change the formula's name.
"Is he aware that it is a great embarrassment to have my name attached to such an unfair system?" he said. "When I introduced it, it was only going to last a year, but it has lasted 20 years," added the Manchester-born peer.
He said that the formula, which gives Scotland and Wales guaranteed shares of spending based on population, should be replaced by one based on need - an argument echoing the demands of councils in the North.
In reply, jokingly, Lord McIntosh said he would undertake never to mention the Barnett Formula again unless prompted by Lord Barnett. But he confirmed that the Government had no plans to change the way it operates or to fund any future English regional assemblies in a similar way.
Liberal Democrat peer Lord Newby predicted that this year's regional referendums would lead to pressure for the formula to be extended to regions like the North-East.
The cross-party committee shadowing the Office of the Deputy Prime Minister called for its abolition last year and the influential Treasury Committee of MPs is due to revisit the issue soon.
Last night, Coun Bob Gibson, leader of the Association of North-East Councils, said: "It may well cause Lord Barnett embarrassment, but it has done a lot more damage than that to the people of the North-East.
"I have no doubt that, at the time, there was a need to put more money towards Scotland but the balance has now shifted so far the other way the Northern regions are really losing out. But it doesn't matter what it is called, it is the formula which is wrong."
Newcastle City Council last month passed a motion calling on the Government to shake-up the Barnett Formula so the region gets more money.
But council leader Tony Flynn warned it was important that councils were not seen to be criticising Scotland.
And Sir Jeremy Beecham, chairman of the Local Government Association and a Newcastle councillor, said: "The whole funding issue needs to be looked at again and Lord Barnett obviously realises that."
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| Title Annotation: | Business |
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| Publication: | The Journal (Newcastle, England) |
| Date: | Jan 7, 2004 |
| Words: | 524 |
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