Government must act now to replace "arbitrary and unfair" Barnett formula - Lord Livsey (Brecon and Radnorshire Liberal Democrats)

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Brecon and Radnorshire Liberal Democrats <info@brecon-radnor-libdems.org.uk>

Government must act now to replace "arbitrary and unfair" Barnett formula - Lord Livsey

March 12, 2010 12:00 AM

Welsh Liberal Democrat peer, Lord (Richard) Livsey has condemned the lack of action from the Government over reform of the Barnett formula.

Speaking in a debate yesterday [Thurs], Lord Livsey called on the Government to implement the recommendations of the Select Committee on the Barnett formula.

The Select Committee report recommended the Barnett formula be replaced with a needs-based formula administered by an independent commission.

Commenting, Lord Livsey said:

"The Select Committee described the Barnett Formula as "arbitrary and unfair". Their recommendations for reform are excellent. I fail to understand why the Government will not act upon them immediately.

"I was disappointed, but not surprised, that the Tory front bench rejected any reform of the Barnett formula. However their dismissal of the recommendations which were supported by their colleagues on the Committee shows an embarrassing split in the party.

"The rejection of the recommendations by the Government and Tory front bench shows that neither understands Welsh priorities and needs.

"We must replace this unfair system immediately."

ENDS

Notes to Editors

Devised as a temporary measure to settle minor Cabinet disputes by Joel (now Lord) Barnett in the late 1970s, the Barnett Formula is a mechanism by which the Treasury automatically adjusts some elements of public expenditure in Scotland, Wales and Northern Ireland. Further detail can be found here: http://www.parliament.uk/commons/lib/research/rp98/rp98-008.pdf

The Select Committee on the Barnett Formula was appointed in December 2008 and reported to the House of Lords in July 2009. Their report and the Government's response can be found here: http://www.parliament.uk/parliamentary_committees/hlbarnettformula.cfm

Hansard link to the debate on the Barnett Formula on Thursday 11 March 2010: http://www.publications.parliament.uk/pa/ld200910/ldhansrd/text/100311-0004.htm#10031134000682