What is the Barnett formula? [Podcast] EP107

If you’ve ever heard us talking about Barnett consequentials and wanted to know more – this is the episode for you!

FAI Deputy Direction João Sousa joins economist Hannah Randolph to talk about the way that UK spending decisions are translated through the Barnett formula into revenues for devolved governments. We discuss the history of the Barnett formula, how it is applied and governed in practice, and what it means for devolved governments’ fiscal policymaking.

TIME STAMPS

(0:25) What is the Barnett formula and what does it do?

(2:50) What came before the Barnett formula and how was it different?

(9:25) Has the Barnett formula resulted in convergence on spending per person across the UK nations?

(12:40) Limits set by the Barnett formula and their impact on spending options for devolved governments

(16:50) Governance framework – can devolved governments challenge decisions made on the Barnett formula?

(22:25) Potential options for changing the Barnett formula and framework