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Territorial Finance and the Future of Barnett
Author(s) -
N. F. Bell David
Publication year - 2015
Publication title -
the political quarterly
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.373
H-Index - 37
eISSN - 1467-923X
pISSN - 0032-3179
DOI - 10.1111/1467-923x.12160
Subject(s) - parliament , referendum , independence (probability theory) , politics , government (linguistics) , autonomy , home rule , political science , public administration , political economy , public finance , economics , law , economic history , linguistics , statistics , philosophy , mathematics
This article traces the changing funding relationships between Scotland and the UK government. Beginning from the Barnett Formula, it examines how the changing support within Scotland for greater political autonomy from Westminster has influenced the mechanisms that have determined Scotland's fiscal structure. Increasing support for the SNP , and then for the Yes campaign in the September 2014 independence referendum, has led to a mixture of new powers being granted to the Scottish Parliament. The Scotland Act 2012 extends the Scottish government's control over income tax and some other small taxes. Although independence was rejected by the Scottish people in September 2014, the ‘Vow’ made by the Westminster parties immediately before the vote is leading to far‐reaching changes in the UK 's fiscal structure. This will cause a very substantial change in intergovernmental relations within the UK , which the Barnett Formula may not survive.