Oral Answers to Questions

Peter Bone Excerpts

Wednesday 15th July 2015 Commons Chamber

[David Mundell]

I think I said in my earlier answer that we had not reached those amendments on that day of the Committee stage, but I am reflecting seriously on them.

[Mr Peter Bone (Wellingborough) (Con)]

7. What estimate he has made of the level of public expenditure per person in Scotland in each of the last three years.

[The Financial Secretary to the Treasury (Mr David Gauke)]

The latest edition of the Country and Regional Analysis calculates that in 2013-14 total identifiable expenditure on services in Scotland was 15% higher than the UK average. Once the Smith agreement has been implemented, changes in Scottish Government funding will increasingly come from changes in Scottish taxes rather than as a result of the Barnett formula.

[Mr Bone]

If we translate that into English, we find that more than £2,000 less per person is spent on people in the east midlands—including my constituents in Wellingborough—than is spent on people in Scotland, yet my constituents pay exactly the same taxes. Does the Minister think that that is fair and just?

[Mr Gauke]

There is no consensus on what the solution should be. The Barnett formula has been in place for some time. In future, however, more than 50% of funding will come from Scottish taxes rather than from the block grant, and the Barnett formula will therefore become less important over time.