House of Lords Committee recommends that the use of the Barnett formula be discontinued

The House of Lords Select Committee on the Barnett Formula has issued its report, which is available at the following link.

Select Committee Report on the Barnett Formula

The report includes the following points in its recommendations:

1) the Treasury should publish its statistics for the workings of the Barnett formula, or its successor, in a single coherent and consistent publication

2) an independent body, such as the Commonwealth Grants Commission in Australia, should be established to recommend the allocation of public monies based on population and through a new needs-based formula

3) future grants should be payable directly from the United Kingdom Government to the consolidated fund of each devolved administration

4) devolution funding should be based on relative need

5) any needs assessment should take into account, the age structure of the population, low income, ill-health and disability and economic weakness.