Latest news with #BarnettFormula


Scotsman
a day ago
- Business
- Scotsman
It's becoming obvious how little Reform understands Scotland
Reform UK has suggested the Barnett Formula and block funding grant from Westminster should go to be replaced with more tax powers for the Scottish Parliament We'll know early tomorrow morning who has won the Hamilton by-election, but during the campaign we have learned a lot more about Reform in Scotland, and it's becoming more obvious how little its leadership understands Scotland. Sign up to our daily newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to Edinburgh News, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Even with defecting opportunist councillors hoping to win a seat in the Scottish Parliament – the latest jumping from Labour – it looks like we'll have to wait for anything resembling a coherent plan, and First Minister John Swinney's so-called special summit just gave them a credibility they didn't deserve. The only party benefitting from the rise of Reform is the SNP and in their usual haste to virtue signal, Labour and the Lib Dems were suckered into trooping along for what was just a promotional vehicle for John Swinney. That being said, the Reform attack on Scottish Labour leader Anas Sarwar was unwarranted, and no one who knows him thinks his main goal is to increase Muslim influence. Advertisement Hide Ad Advertisement Hide Ad But it was Nigel Farage's declaration that the Barnett Formula should go, and with it the block grant from Westminster, made up by devolving more taxation powers to Holyrood, which really exposed how little he understands, or cares, about Scotland. The Barnett Formula is not some financial sleight of hand designed to rip off English taxpayers, but a means to ensure the distinct needs of country in which a tenth of the UK population scattered across a third of the landmass are properly met. Scrapping the formula is not the same as arguing for more efficient spending, and there is no shortage of examples of how the SNP squanders public money, the botched ferries being symbolic. But whoever told Nigel Farage that telling Scottish people they should receive less money was a vote winner needs to be kept away from sharp implements. And his suggestion that Holyrood's taxraising powers should be increased could only come from someone who has not studied what has happened with the extensive powers devolved after the 2014 referendum. Maybe more financial power could be contemplated if it meant lower taxes, but the chances of that happening are slim to non-existent, certainly not from Reform which says it supports higher welfare spending. Reducing personal taxation through more efficient services and the use of artificial intelligence, freeing up resources for infrastructure investment, and cutting the burden on businesses are all goals which plenty of people would agree with, but the back-of-Nigel's-fag-packet Reform approach would be disastrous for us all. What has been confirmed in the space of only a few days is that Reform is not really about reform at all, but con artists telling people what they want to hear; increase benefits but cut tax, give Holyrood more power but slash its budget. Get Royal Marines to stop the boats? What, by opening fire? It's all hokum designed to fool, and like a fairground charlatan, Nigel Farage doesn't care. The 'plague on all your houses' motivation for voting Reform is all very well, but like Labour's do-good MPs voting for Jeremy Corbyn to create a contest they thought he had no chance of winning, people need to be very careful what they wish for. The last thing those voting Reform want is an SNP victory, but I strongly suspect when the good folk of Hamilton wake up tomorrow that's what they'll get. Sue Webber is a Scottish Conservative MSP for Lothian


Telegraph
2 days ago
- Business
- Telegraph
Has Nigel Farage just snatched defeat from the jaws of victory?
You can take the lad out of England but you can't really take the English nationalist out of the lad. Has that become the issue in the Hamilton Larkhall and Stonehouse by-election when the polling stations open? It is the increasingly prevalent view of Nigel Farage's opponents following his demand for what he called a 'review' – although I'm sure he really meant the abolition – of the Barnett formula, which has been used for more than fifty years to calculate how much the UK's nations and regions should receive from the Treasury. It is but the latest of the signs, say SNP, Labour and Tories, that Mr Farage knows nothing about Scotland. The cash Barnett produces for Scotland has become a running sore in relations between many in England and Scotland in recent years as the gap in funding between the two has grown and grown. Official figures now show that Scots now get an average £2400 more per person than those in England – a record amount. But to successive Labour, Tory and coalition UK governments, the Barnett largesse is regarded as the 'Union dividend' which helps Scotland remain a key part of the United Kingdom. Ditching what is seen as this 'Barnett bounty' for Scotland – due to reach £50 billion this year – would, say Reform's critics, be a boost for the SNP and its perpetual demand for independence. David Mundell, the former Conservative Scottish Secretary, said: 'This proves that Reform isn't a Unionist Party, instead it's a populist party that wouldn't stand up for the Union.' The Reform UK leader's view is that the system, devised by Labour's Treasury Chief Secretary in the 1970s, was out of date and should be scrapped, throwing a massive hand grenade into the already bad tempered campaign for Thursday's by-election in Hamilton, Stonehouse and Larkhall. Most Scottish politicians have insisted that the difference in average spending north and south of the border, thanks to Barnett, was justified because of poor health standards in Scotland and a widely scattered population, often in remote regions, including island communities. Mr Farage's view, shared by many in English voters, is that the money paid to Scotland through Barnett formula should be replaced by the devolved Scottish government being able to raise more of its own revenue through increased growth … and presumably higher taxes. But with the cash provided by the UK Treasury through Barnett, the so-called block grant, due to reach £50 billion this year he said that Scotland needed a 'thriving economy', instead of one heading in the wrong direction. Scottish Tory leader Russell Findlay said the Farage demand would 'take a wrecking ball' to Scotland's public services and bring misery to Scottish families, workers and businesses. The main plank – indeed its only plank – of Labour's campaign is to bank heavily on the voters taking an active personal dislike to Mr Farage. They constantly place a heavy emphasis on how little he knows about Scotland while ordinary voters 'see right through him', according to Scottish Labour leader Anas Sarwar. That and his alleged views on race which his critics say will count against him and which Mr Farage denies. Mr Sarwar also described his Reform counterpart as a 'chief clown', while 'crashing his own campaign' was the view of another leading Labour strategist over Mr Farage's idea of ending Barnett as it would have serious repercussions for Scottish public services, such as education and the NHS. But this doesn't seem to have bothered Nigel Farage overmuch, as he captured two more defectors this week – one councillor each from Labour and Conservatives. The battle on Thursday is shaping up to be a straight fight between the SNP and Reform, with Labour struggling to stay in the race while hoping that the voters in Hamilton record their lack of fellow feeling – and then some – for the leader of Reform UK.


Scotsman
3 days ago
- Business
- Scotsman
How Nigel Farage let his mask slip and revealed what he'd really do to Scotland
Sign up to our daily newsletter – Regular news stories and round-ups from around Scotland direct to your inbox Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... On Monday, Nigel Farage finally hauled himself away from his holidays and found his way up to Scotland (apparently for only the third time in five years). And while the media can never resist a circus, during his interviews with journalists, Farage let the mask slip. The Clacton MP blurted out his plans to replace the Barnett Formula – the funding mechanism that ensures Scotland gets a fair deal for devolved services based on the UK Government's spending in England. Advertisement Hide Ad Advertisement Hide Ad It was as a result of the Barnett Formula that the UK Labour government delivered the largest budget settlement for the Scottish Government in the history of devolution and £5.2 billion of additional funding for Scottish public services. This means that overall spending per head of population can be as much as 17 per cent higher in Scotland. Nigel Farage is an English nationalist who doesn't care about Scotland (Picture: Carl Court) | Getty Images Historic imbalances Last year, the Scottish Government's own figures found that spending in Scotland outstripped all the revenues raised by over £22bn, even when North Sea taxes were taken into account. That means people in Scotland benefit from £2,417 more per head of additional spending compared to the UK average. In other words, it's the Barnett Formula that addresses historic imbalances and ensures that wealth is redistributed throughout the UK so that everyone has the best chance of accessing our NHS and using public services, no matter where they live. Advertisement Hide Ad Advertisement Hide Ad But Farage isn't interested in delivering for Scotland. He is an English nationalist who called as early as 2014 for the Barnett Formula to go, and as leader of the so-called UK Independence Party told the BBC: "We've heard a lot from Scotland but the tail cannot go on wagging the dog any longer." Farage does not only have contempt for Scotland – it extends to our NHS. He has repeatedly called for the NHS to be privatised and replaced with health insurance. In other words, forcing working families to pay from their own pockets for lifesaving care. Feeding off voters' despair Now, with his comments on scrapping the Barnett Formula, the Reform leader has said the quiet part out loud. Reform would trash our public services to win over voters in its English heartlands. I understand why Nigel Farage appeals to voters. He's like the scam artist who targets people at their lowest – and the reality is that after nearly two decades of the SNP's managed decline, Scots are fed up. Advertisement Hide Ad Advertisement Hide Ad But Reform are feeding off this despair without offering any real solutions of their own. So let's be under no illusion – the former stockbroker is not interested in Scotland. He doesn't understand Scotland and he really doesn't care about Scotland. Rather than trying to come up with genuine ideas to improve our NHS or public services, Farage is spending thousands on racist adverts targeting Scottish Labour's leader, Anas Sarwar. Anas is a former NHS dentist who was born and brought up in Glasgow and has spent his life campaigning for working Scots. And unlike Reform, Scottish Labour has made fixing the NHS our number one priority. Scots who are sick of the SNP's incompetence are right to want change – but it's Scottish Labour that is ready to deliver it.


ITV News
3 days ago
- Business
- ITV News
Anger as Oxford-Cambridge railway line classified as England and Wales project
Politicians have expressed frustration as upgrades to a railway line between Oxford and Cambridge have been classified by the Treasury as an England and Wales project, despite no work taking place in Wales. The £6.6billion project will connect communities between Oxford, Milton Keynes, Bedford and Cambridge. Usually, under the Barnett Formula - the system used to fund the devolved nations - Wales, Scotland and Northern Ireland get extra money when more cash is spent on devolved issues like education in England. But because the railways are not fully devolved to Wales, the Welsh Government doesn't receive this money when it comes to rail infrastructure, unlike Scotland and Northern Ireland. The issue hit the headlines when HS2 was also classified as an England and Wales project. This has left some MPs feeling Wales is being shortchanged. David Chadwick, Liberal Democrat MP for Brecon, Radnor and Cwm Tawe, said on X: "There can be no justification for this whatsoever. The UK government has decided to deliberately shortchange Wales." Speaking to BBC Radio Wales, he said: "I don't think anybody seriously believes that a railway from Oxford to Cambridge benefits rail users in Swansea or Bangor. "The Treasury is just using these classifications to avoid paying Wales what it's owed, and that's the real point - somebody in the UK Government has decided to shortchange Wales again by deliberately labelling this as an England and Wales project to avoid giving Wales any money, and that's why I'm calling for this to be re-classified as an England-only project." In the Senedd, Plaid Cymru leader Rhun ap Iorwerth challenged First Minister Eluned Morgan on the issue, saying it was "confirmation that we have another HS2 on our hands. You could not make this up." The first minister responded: "Rail infrastructure is not devolved to Wales, you might want it to be, but that is the situation it is in. "There is a pipeline of projects for England and Wales. Are we getting our fair share? Absolutely not. Am I making the case? Absolutely. And I'm hoping we'll see some acknowledgment of that through the spending review. "The Oxford- Cambridge line is part of that broader rail infrastructure, HS2 is an exception to that which is why we're making the case in a separate way. " In a written answer to David Chadwick MP, the Department for Transport said: "East West Rail is set to cover the route from Oxford to Cambridge and is therefore part of the RNEP portfolio which covers funding for projects in England and Wales. The RNEP portfolio can be distributed to any scheme across England and Wales."


Daily Record
3 days ago
- Business
- Daily Record
SNP and Reform UK 'have more in common than they would care to admit' in row over Holyrood funding
EXCLUSIVE: Ian Murray has accused both John Swinney and Nigel Farage of wanting to scrap the Barnett Formula that guarantees higher public spending in Scotland. The SNP and Reform UK"have more in common than they would care to admit", a senior Labour minister has said. Ian Murray today accused both John Swinney and Nigel Farage of wanting to scrap the Barnett Formula that guarantees higher public spending in Scotland. The Scottish Secretary spoke out after Nigel Farage claimed yesterday the funding model for Holyrood was "out of date" and "should be looked at again". Murray, MP for Edinburgh South, warned scrapping the system could lead to "Liz Truss on steroids" with massive cuts in spending required. Currently, the Scottish Government receives an annual block grant from the UK Treasury to spend on devolved areas like the NHS and schools. The amount of cash sent north to Edinburgh is calculated under a 45-year-old system known as the Barnett Formula. It has been repeatedly criticised by some English MPs as being too generous, as it delivers higher spending per head of population in Scotland than elsewhere in the UK. But SNP ministers have signalled in recent months their preferred option of financing devolution - short of achieving independence - is full fiscal autonomy. This would leave Scotland responsible for all its taxation, spending and borrowing, with payments made to the UK Government for certain collective services such as defence. But critics have warned such a system would raise £12.8 billion less than the Scottish Government currently spends on public services. Murray told the Record it was now clear both Reform and the SNP wanted to scrap the Barnett Formula. "Nigel Farage and John Swinney have more in common than they would care to admit - they both want to impose massive cuts to public spending in Scotland with a £12.8 billion Barnett bombshell," he said. "Labour's austerity ending budget delivered £50 billion for public services in Scotland. The Barnett Formula guarantees higher public spending per head for Scotland. "Both the SNP and Nigel Farage want to end the Barnett Formula. The cost of that would be £12.8 billion to Scotland's public services like our NHS. "That's the economic mayhem of Liz Truss on steroids. No surprise given Farage was head of the Margaret Thatcher Fan Club. "It's fantasy economics and Scots will want no part of it." It comes after the Record pressed the Reform UK leader on whether he felt public spending in Scotland was too high. Farage said: said: "The Barnett Formula seems to me to be somewhat out of date. What I'd like to see is a Scottish Government that's able to raise a bit more of its own revenue, and a Scottish economy that has genuine growth. "And I don't believe that can happen without this sector (North Sea oil and gas) booming. "The Barnett Formula goes back to the 1970s. Is there an argument that it should be looked at again? Of course there is. "But I mean, frankly, frankly, if you look at welfare dependency, if you look at educational standards, the idea, the 50 billion this year, roughly what the figure is going to be, going to Scotland. It isn't going to reduce in the short term until Scotland actually starts to have an economy that is thriving and right now it's going in completely the wrong direction." The Record has asked the Scottish Government for comment.