According to an economic think tank, for every £ 1 the UK government allocates to the UK government, Scottish people will be charged an additional 30 pence.
The Institute for Fiscal Studies (IFS) reports that almost all of the 30% gap is due to the controversial Barnett formula.
The formula is a fixed way of distributing money among UK delegated governments for a particular service. But critics say the formula is too flexible, trapped in historical differences in spending.
Expenditure inequality is widening, according to IFS.
The· report The Scottish Government has realized that per capita will “almost certainly” get more money to tackle the pandemic.
However, Prime Minister Nicola Sturgeon’s government claims that it plans to use the funds allocated to the pandemic for other policies, including the core policy of her reelection manifesto.
“With the exception of temporary COVID-19 funding, the Scottish Government can spend more than £ 1.30 per person on public services this year for every £ 1 per person on equivalent services in the United Kingdom. “IFS Associate Director David Phillips said. statement.
“This is almost entirely due to funding received from the UK Government via the Burnett method, which is less than 2p of the gap between Scottish Government borrowing and high income taxes.”
He said tax revenues have risen only slightly due to the economic downturn, despite the tax increase in Scotland.
“They are collapsed “Compared to a world without tax delegation, it reminds us that if these tax increases were not implemented, delegation would pose risks and opportunities,” he said.
Scottish Treasury Secretary Kate Forbes has blamed the 10-year “relentless” austerity spending gap under the Conservative Party.
according to Holyrood magazine, She states: “Burnet’s formula provides Scotland with slightly higher per capita public spending than Britain, but Westminster’s Tory has already cut its capital budget by 5% and deprived the Scottish Parliament of power. You can engage in “profit-inducing” spending through so-called level-up funds. “
A spokesman for the Scottish Tory economy Telegraph“The additional money Scotland will earn through Burnett’s formula in the coming months and years is the key to saving jobs, supporting businesses, growing the economy and providing quality workforce training. Will be. “
according to Institute for Government, UK The main skeleton of the dispute with Burnett’s formula is that it uses the delegated budget of the previous year as a starting point and “hence the historical difference in spending between nations.”
“This formula is slow to respond to changes in relative population size and is even more disadvantageous for England, which has the fastest growing population.”