Fresh calls from the Local Government Association to scrap the Barnett formula have made it clearer than ever that a No vote next year would lead to severe cuts in Scotland’s budget.
The calls from the Local Government Association follows the visit to Scotland of Carwyn Jones, who has previously echoed calls for the scrapping of the Barnett formula in a move which the Holtham Commission indicated could see Scotland’s budget cut by £4 billion in a single year!
This morning on GMS, the Welsh First Minister was asked whether his calls to scrap the Barnett Formula would mean more or less funding for Scotland. He replied: “It’s difficult to tell, what we do know because we’ve looked at it purely from a Welsh perspective is that we’re under funded by £300 million. From my point of view, as long as that under funding is dealt with it doesn’t really matter in terms of what happens in Scotland.”
Scotland currently generates 9.9% of UK tax revenues, but receives just 9.3% of UK public spending and has paid more in tax per head than the rest of the UK for all of the last thirty years.
Commenting, SNP MSP Stuart McMillan said:
“These calls from the Local Government Association are the latest evidence that a No vote next year would see the axe taken to Scotland’s budget.
“With politicians from across the Westminster parties lining up to cut Scotland’s budget, there can be no escaping the dismal reality of what a No vote means for Scotland.
“The Holtham Commission has made clear that Scotland could see £4 billion taken straight out of our finances, which would have an absolutely devastating impact on services and communities across the length and breadth of Scotland.
“For Labour's Carwyn Jones to claim that the impact this would have on Scotland doesn’t really matter is frankly breath-taking, and speaks volumes about the attitude of the No campaign.
“Scotland already more than pays our own way in the UK, and these appalling moves to inflict severe cuts to Scotland’s budget can only be avoided by Scotland gaining full responsibility for our own tax and spending decisions.
“Only a YES vote next year will protect Scotland from the billions of pounds of cuts that would inevitably come our way if Scotland remains tied to the Westminster system.”