Barnett Formula still needs reform, says Beith

12.00.00am BST (GMT +0100) Tue 8th Jun 2010

The Barnett Formula still needs to be reformed, and the previous Government let the north east down by failing to do so, according to Berwick's Liberal Democrat MP Sir Alan Beith.

Following a debate in the House of Lords on Monday, Sir Alan has spoken out about the problems caused by adherence to the Barnett Formula, which is used to calculate the level of public funding passed from central government to Scotland, Wales and Northern Ireland. It was introduced in the 1970s as a short term tool for calculations but has never been replaced, despite many calls for change from a range of individuals and institutions including Lord Barnett himself.

Sir Alan said

"Scotland's funding will reduce as cuts are made to public spending in England, and if the North east is given the special consideration which Ministers have talked about then the effects of the Barnett Formula will start to look significantly different.

"Sooner or later the Barnett Formula has to be reformed and it is always hard to set up new funding structures when funding is being cut back. The reform really should have been done years ago and the Labour Government had thirteen years to do so but failed."