Poor old Joel Barnett. He would no doubt like to be remembered for being an effective Chief Secretary to the Treasury in the Callaghan government and for being, along with his old boss Denis Healey, one of two surviving nonagenarians who served in that administration.
Instead his name is forever linked to the wretched funding formula which he devised in 1978 as a short-term fix and which, 36 years later, still ensures average public spending per head in Scotland is some £1,600 more than in England and Wales.
Barnett has long been embarrassed by his formula and first called for it to be scrapped when appearing before the Treasury Select Committee in 1998.
In 2004, he went further, calling for his name to be taken off it. This was reported at the time by myself and my then Journal colleague David Higgerson and our story can still be found at an online archive.
Now he has repeated his call in the wake of the absurd pledge by Messrs Cameron, Clegg and Miliband to guarantee the formula's survival in perpetuity in the event of a no vote to independence in tomorrow's referendum.
He told The Telegraph: "It is unfair and should be stopped, it is a mistake. This way is terrible and can never be sustainable, it is a national embarrassment and personally embarrassing to me as well."
Lord Barnett is now 90. Is it too much to hope that he may yet live to see his wish fulfilled?
Wednesday, September 17, 2014
Tuesday, September 16, 2014
Barnett Formula pledge is undeliverable and wrong
I was dismayed to read that the party leaders - and Gordon Brown - have pledged to continue the Barnett Formula as part of their three-point 'guarantee' to Scottish voters ahead of Thursday's referendum.
The formula, which gaurantees Scotland a higher level of public spending per head than anywhere else on the British mainland, has been out of sync for many years and, as the former Welsh Secretary John Redwood points out, is particularly unfair to Wales and the Northern English regions which have similar levels of need.
It won't alter my support for the Better Together campaign, but the future funding arrangements for the different parts of the UK need to be based on a new assessment of relative need, not a short-term political fix.
My suspicion is that the pledge will actually be undeliverable. I can't imagine for a moment that
English MPs will stand for it in the long run, even if they are keeping their mouths firmly shut at the moment for fear of playing into the hands of the Yes campaign.
The politician who should be most ashamed of himself for allowing this absurd pledge to form part of the last-ditch appeal to wavering Scottish voters is Nick Clegg, whose party has previously called for the replacement of Barnett with a needs-based formula. Given Clegg's track record of U-turning on previous agreed party policy, however, perhaps we shouldn't be too surprised by this.
In any case, the new powers envisaged for the Scottish Parliament, including the ability to raise their own taxes, ought to enable Scotland to move closer towards financial self-sufficiency rather than continuing to rely on block grants from Westminster. In this sense, maintaining the Barnett Formula in perpetuity would fly in the face of the moves towards federalism that Gordon and others are now belatedly advocating.
3pm Update: It seems they are not keeping their mouths shut after all. I very much fear that the pro-Union campaign is going to fall apart over the next 24 hours as a result of this stupid and unnecessary attempt to bribe the Scots.
The formula, which gaurantees Scotland a higher level of public spending per head than anywhere else on the British mainland, has been out of sync for many years and, as the former Welsh Secretary John Redwood points out, is particularly unfair to Wales and the Northern English regions which have similar levels of need.
It won't alter my support for the Better Together campaign, but the future funding arrangements for the different parts of the UK need to be based on a new assessment of relative need, not a short-term political fix.
My suspicion is that the pledge will actually be undeliverable. I can't imagine for a moment that
English MPs will stand for it in the long run, even if they are keeping their mouths firmly shut at the moment for fear of playing into the hands of the Yes campaign.
The politician who should be most ashamed of himself for allowing this absurd pledge to form part of the last-ditch appeal to wavering Scottish voters is Nick Clegg, whose party has previously called for the replacement of Barnett with a needs-based formula. Given Clegg's track record of U-turning on previous agreed party policy, however, perhaps we shouldn't be too surprised by this.
In any case, the new powers envisaged for the Scottish Parliament, including the ability to raise their own taxes, ought to enable Scotland to move closer towards financial self-sufficiency rather than continuing to rely on block grants from Westminster. In this sense, maintaining the Barnett Formula in perpetuity would fly in the face of the moves towards federalism that Gordon and others are now belatedly advocating.
3pm Update: It seems they are not keeping their mouths shut after all. I very much fear that the pro-Union campaign is going to fall apart over the next 24 hours as a result of this stupid and unnecessary attempt to bribe the Scots.
Saturday, September 13, 2014
Thatcher, Blair, Brown, Cameron...All are to blame
Today's column in The Journal, tying together some of the independence referendum threads I have blogged about this week.
SOON it will all be over. By the next time this column appears, the debate that has dominated British politics for the past six months will finally have been settled, and Scotland will have voted yea or nay to independence.
It has been, without doubt, the hardest vote to call in living memory. For a long time the ‘Better Together’ campaign appeared to hold an unassailable lead, but as was always likely, the gap began to close as the emotional case for independence began to sway the hearts of voters.
Belatedly, the No campaign has this week tried to come up with some emotion of its own, temporarily setting aside all the dry arguments about currency with a series of impassioned ‘Please Don’t Go’ type appeals.
Prime Minister David Cameron has even joined the fray, despite having previously concluded that such direct personal involvement would simply play into the hands of the Yes campaign with its adroit portrayal of him as the representative of an out-of-touch, English Westminster elite.
Writing as a committed unionist, these have been worrying days indeed. Many of a similar persuasion have asked the question how on earth we got into this mess, and specifically, how Mr Cameron allowed us to get to a point where the break-up of the UK is now a very real prospect.
To my mind, the answer is clear. What we are now seeing is the inevitable outworking of the Conservative Party’s decision, after 1979, to eschew One Nation politics in favour of a free market ideology that found little favour with the Scots – or, for that matter, the Northern English.
It is easy to blame Margaret Thatcher for the country’s ills, but it was her government’s abandonment of the post-war political consensus that began the progressive estrangement between Scotland and Westminster that could now lead to outright separation.
It may have won her three elections, but it was done with no regard for how it would affect the social fabric and essential political unity of the UK, and no thought for whether the Scots would still want to be part of the country she was creating.
Three and half decades on, the differences over the future of the National Health Service provide perhaps the clearest illustration of the growing disconnect.
Mr Cameron’s decision to enact the 2012 Health and Social Care Bill, which potentially paves the way for the future privatisation of the NHS, has been exploited to the full by Scottish First Minister Alex Salmond.
It matters little, as Gordon Brown pointed out this week, that health is already a devolved matter for the Scottish Parliament and that a Westminster government would therefore find it hard if not impossible to privatise health services in Scotland.
The fact that the legislation was passed at all is tells Scots all they need to know about the gulf in values that now exists.
There was a brief, evanescent moment, in May 1997, when I thought that Tony Blair was going to restore that lost sense of shared values, to stitch the country’s frayed political bonds back together and forge a new consensus.
Asked to describe the new Prime Minister’s mood following his landslide victory the night before, Alastair Campbell responded: “He realises he has been given a remarkable opportunity to unite the country.”
Alas, he chose instead to triangulate Labour’s own values out of existence to the point where even a relatively left-leaning leader such as Ed Miliband is now no longer trusted by the party’s traditional voters - in Scotland most of all.
It is too late to put Humpty together again now. The only thing that will now save the union is rather by recognising the distinctive political cultures that exist within different parts of the UK and allow them to go their own ways, within the overall UK umbrella.
Mr Brown, belatedly, has come to realise this, although his intervention in the debate this week rather begs the question why he did not do more to decentralise the UK while in office.
Devolution could have been his Big Idea. But though we waited and waited and waited for him to “set out his vision,” his government had become so politically enfeebled by then that it seemed in a permanent state of intellectual stasis.
So he, too, is culpable along with Thatcher, Blair and Cameron for what has been a collective failure of leadership over many, many years.
One thing is certain whatever the result on Thursday. The country over which they presided will never be the same again.
SOON it will all be over. By the next time this column appears, the debate that has dominated British politics for the past six months will finally have been settled, and Scotland will have voted yea or nay to independence.
It has been, without doubt, the hardest vote to call in living memory. For a long time the ‘Better Together’ campaign appeared to hold an unassailable lead, but as was always likely, the gap began to close as the emotional case for independence began to sway the hearts of voters.
Belatedly, the No campaign has this week tried to come up with some emotion of its own, temporarily setting aside all the dry arguments about currency with a series of impassioned ‘Please Don’t Go’ type appeals.
Prime Minister David Cameron has even joined the fray, despite having previously concluded that such direct personal involvement would simply play into the hands of the Yes campaign with its adroit portrayal of him as the representative of an out-of-touch, English Westminster elite.
Writing as a committed unionist, these have been worrying days indeed. Many of a similar persuasion have asked the question how on earth we got into this mess, and specifically, how Mr Cameron allowed us to get to a point where the break-up of the UK is now a very real prospect.
To my mind, the answer is clear. What we are now seeing is the inevitable outworking of the Conservative Party’s decision, after 1979, to eschew One Nation politics in favour of a free market ideology that found little favour with the Scots – or, for that matter, the Northern English.
It is easy to blame Margaret Thatcher for the country’s ills, but it was her government’s abandonment of the post-war political consensus that began the progressive estrangement between Scotland and Westminster that could now lead to outright separation.
It may have won her three elections, but it was done with no regard for how it would affect the social fabric and essential political unity of the UK, and no thought for whether the Scots would still want to be part of the country she was creating.
Three and half decades on, the differences over the future of the National Health Service provide perhaps the clearest illustration of the growing disconnect.
Mr Cameron’s decision to enact the 2012 Health and Social Care Bill, which potentially paves the way for the future privatisation of the NHS, has been exploited to the full by Scottish First Minister Alex Salmond.
It matters little, as Gordon Brown pointed out this week, that health is already a devolved matter for the Scottish Parliament and that a Westminster government would therefore find it hard if not impossible to privatise health services in Scotland.
The fact that the legislation was passed at all is tells Scots all they need to know about the gulf in values that now exists.
There was a brief, evanescent moment, in May 1997, when I thought that Tony Blair was going to restore that lost sense of shared values, to stitch the country’s frayed political bonds back together and forge a new consensus.
Asked to describe the new Prime Minister’s mood following his landslide victory the night before, Alastair Campbell responded: “He realises he has been given a remarkable opportunity to unite the country.”
Alas, he chose instead to triangulate Labour’s own values out of existence to the point where even a relatively left-leaning leader such as Ed Miliband is now no longer trusted by the party’s traditional voters - in Scotland most of all.
It is too late to put Humpty together again now. The only thing that will now save the union is rather by recognising the distinctive political cultures that exist within different parts of the UK and allow them to go their own ways, within the overall UK umbrella.
Mr Brown, belatedly, has come to realise this, although his intervention in the debate this week rather begs the question why he did not do more to decentralise the UK while in office.
Devolution could have been his Big Idea. But though we waited and waited and waited for him to “set out his vision,” his government had become so politically enfeebled by then that it seemed in a permanent state of intellectual stasis.
So he, too, is culpable along with Thatcher, Blair and Cameron for what has been a collective failure of leadership over many, many years.
One thing is certain whatever the result on Thursday. The country over which they presided will never be the same again.
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