The Distribution of Public Expenditure across the UK Regions

McLean, Iain; McMillan, Alistair

doi:10.1111/j.1475-5890.2003.tb00076.x

Cited by 52 publications

(26 citation statements)

References 14 publications

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“…In comparison to actual relative spending on healthcare, the results of both formulae also appear to re-enforce the view that levels of public spending are relatively generous (compared to need) in Scotland and NI, but less so in Wales (MORGAN, 2001;MCLEAN and MCMILLAN, 2003). Of course, the block grant allocations to the DAs are not earmarked, so Wales could increase spending on healthcare if it chose.…”

Section: Discussionmentioning

confidence: 67%

“…devolved] regions held ' (CHRISTIE and SWALES, 2010). Modelling this as a sequential game, HALLWOOD and MACDONALD (2009) make a similar point about the role of devolved territories' threat to secede from the Union in maintaining a territories grant at a level above that which the territory might receive should grant be based on 'need' alone, an argument that was similarly made by McLEAN and McMILLAN (2003) in commenting on the formula's apparent generosity to Scotland and NI relative to Wales.…”

Section: The Political Economy Of Funding the Devolved Territoriesmentioning

confidence: 92%

“…This has led to the formula being claimed variously to be overly generous to some territories (in particular Scotland but also NI) and less generous to others (Wales), (MORGAN, 2001;MCLEAN and MCMILLAN, 2003;MACKAY, 2005).…”

Section: The Political Economy Of Funding the Devolved Territoriesmentioning

confidence: 99%

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Assessing Relative Spending Needs of Devolved Government: The Case of Healthcare Spending in the UK

Ball

Eiser

King³

2013

Regional Studies

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Abstract. The UK's devolved administrations (DAs) rely on block grants to finance most of their spending, but the level of grants allocated to them is not determined by any estimate of their spending needs. There are increasing calls to replace the current grant allocation mechanism with one which explicitly considers the DAs' spending needs, although some commentators argue that assessing their needs is not practicable, given the normative dimension in defining need. This paper compares two existing formulae for estimating healthcare spending needs (used by the NHS to allocate resources within England and Scotland) by applying both formulae to the DAs. It is found that these formulae provide very similar estimates of the DAs' healthcare spending needs, and both formulae imply that the current distribution of resources across the DAs may be inequitable. The implications for the possible development of grant allocation mechanisms based on estimates of spending needs are discussed.

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Section: Discussionmentioning

confidence: 67%

Section: The Political Economy Of Funding the Devolved Territoriesmentioning

confidence: 92%

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Assessing Relative Spending Needs of Devolved Government: The Case of Healthcare Spending in the UK

Ball

Eiser

King³

2013

Regional Studies

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“…A number of authors have argued that the strict imposition of the Barnett formula is unsustainable (Christie, 2002;McLean and McMillan, 2003). At the simplest level, should up-dated "needs assessments" become available, it would, …”

Section: Discussionmentioning

confidence: 99%

“…Much of the Scottish literature surrounding the operation of the Barnett formula therefore focuses on the fact that with increasing nominal public expenditure in England, the proportionate public expenditure advantage at present enjoyed by Scots will decline. This is the so-called Barnett squeeze (see, for example, Bell et al 1996;Cuthbert, 2001;Edmonds, 2001;Heald, 1996;Heald and McLeod, 2002a;Kay, 1998;McCrone, 1999;McLean and McMillan, 2003, Midwinter, 2000Twigger 1998. ) It is important to say that during much of the period since 1979, bypass and adjustment of nonformula-driven expenditures have meant that actual expenditures in Scotland appear to have differed, to Scotland's advantage, from the level implied by the strict application of the Barnett formula (Midwinter, 2002).…”

mentioning

confidence: 99%

The Impact of the Barnett Formula on the Scottish Economy: Endogenous Population and Variable Formula Proportions

et al. 2007

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The Barnett formula is the official basis upon which increments to public funds are allocated to the devolved regions of the UK for those parts of the budget that are administered locally.There is considerable controversy surrounding the implications of its strict application for the relevant regions. The existing literature focuses primarily on the equity of the spatial changes to government per capita expenditure that would accompany such a change. In contrast, this paper attempts to quantify the system-wide economic consequences -the real, relative resource squeeze that accompanies the financial relative squeeze -on one devolved region, Scotland.The analysis uses a multi-sectoral regional computable general equilibrium modelling approach.We highlight the importance of population endogeneity, particularly since the population proportions used in the formula are now regularly up-dated.3

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The United Kingdom’s Territorial Funding Arrangement: A Holding Together Tool?

Romero Caro

2024

Federalism and Internal Conflicts

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The accommodation of territorial diversity is one of the biggest challenges that modern societies must face nowadays, especially in a context where secessionist movements are on the rise. Multilevel government plays a key role in managing diversity and reducing the risk of secession. The fiscal dimension is a vital component of any system of shared government as the lack of financial resources to finance constitutionally assigned competences would render them inoperable, reducing autonomy to an empty vessel. However, the use of fiscal instruments to accommodate diversity and reduce the risk of secession has barely been explored. Against this background, this chapter explores, from a legal perspective, the internal architecture of the United Kingdom’s territorial funding arrangement, the Barnett formula, with the aim of investigating its integrative and disintegrative effects in relation to Scotland. This is done on the hypothesis that redistribution mechanisms: raise the cost of secession in subunits that are net receivers of funds; have an integrating function as they promote economic development and cohesion; and tend to enhance a sense of belonging and solidarity among constituent units by fostering national unity. The chapter focuses on all sources of law, including also secondary legislation, with the final aim of evaluating if and to what extent the Barnett formula can be conceived as an instrument of nation building that contributes to reducing territorial tensions and accommodating diversity, in the end reversing disintegrative trends. This is done through the evaluation of the integrative and disintegrative potentials of each of the elements of the internal architecture of equalization mechanisms.

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The Distribution of Public Expenditure across the UK Regions

Cited by 52 publications

References 14 publications

Assessing Relative Spending Needs of Devolved Government: The Case of Healthcare Spending in the UK

Assessing Relative Spending Needs of Devolved Government: The Case of Healthcare Spending in the UK

The Impact of the Barnett Formula on the Scottish Economy: Endogenous Population and Variable Formula Proportions

The United Kingdom’s Territorial Funding Arrangement: A Holding Together Tool?

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