MPs to hear evidence on Barnett formula and fiscal devolution

MPs to hear evidence on Barnett formula and fiscal devolution

Westminster’s Scottish Affairs Committee will next week hold the first evidence session of its inquiry into the financing of the Scottish Government.

Members of the committee are examining the current funding model for the Scottish Government and the wider framework for fiscal devolution.

In the first session on Wednesday 29 January, 9.30am, members will question expert commentators on the effectiveness and fairness of the Barnett formula, which calculates the annual change in the block grant, 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.

The witnesses appearing on Wednesday will be David Phillips, associate director at the Institute for Fiscal Studies; Claire Murdoch, head of fiscal sustainability and public funding at the Scottish Fiscal Commission; and Dr João Sousa, senior knowledge exchange fellow and deputy director at the Fraser of Allander Institute.

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