MPs to examine the Barnett formula
24 January 2025
The Scottish Affairs Committee will hold the first evidence session of its inquiry into the financing of the Scottish Government.
During this inquiry, members will examine the current funding model for the Scottish Government and the wider framework for fiscal devolution.
In the session, the Committee will question expert commentators on the effectiveness and fairness of the Barnett formula, which calculates the annual change in the Block Grant, which is the Scottish Government’s core source of funding. Annual changes in this funding, or ‘Barnett consequentials’, reflect changes in UK Government department spending and can be spent on any devolved services by the Scottish Government.
MPs may also examine how transparent the UK Government is about its funding decisions and approaches to bypassing the formula to provide additional funding, as well as exploring potential routes to formalise this process.
Members could examine the borrowing limits and conditions of the wider fiscal framework between the two Governments and views on the prospect of changing these conditions.
Witnesses
At 09:30am:
- David Phillips, Associate Director at Institute for Fiscal Studies
- Claire Murdoch, Head of Fiscal Sustainability and Public Funding at Scottish Fiscal Commission
- Dr João Sousa, Senior Knowledge Exchange Fellow and Deputy Director at Fraser of Allander Institute
Further information
Image: House of Commons