FULL FISCAL AUTONOMY ONLY ALTERNATIVE TO BARNETT

FULL FISCAL AUTONOMY ONLY ALTERNATIVE TO BARNETT

Responding to the publication of a House of Lords Committee report on the Barnett formula, which recommends scrapping the funding mechanism, SNP Treasury spokesperson Stewart Hosie MP said the only acceptable alternative was full fiscal autonomy for Scotland - allowing the country to raise all the money it spends.

Mr Hosie said:

“If the Barnett formula is to be scrapped then the only acceptable alternative is full fiscal autonomy for Scotland, allowing this country to raise the money it spends. That is the best and simplest solution – anything less would messy and unsustainable, and could well leave Scotland worse off.

“All parties recognise that the Barnett formula is no longer sustainable and should be replaced – but it must be replaced with a system of full fiscal responsibility giving Scotland the powers over taxation, including oil and gas, and spending that are needed to effectively manage the Scottish economy.

“And the case for financial independence is reinforced by the most recent GERS report [Government Expenditure & Revenue Scotland] which shows that in 2007/08 Scotland's current budget surplus was £219 million, compared to a UK deficit of £5.3 billion pounds – and that Scotland has been in budget surplus now for three successive years, to the tune of 2.3 billion pounds.

“The bottom line is that we must not have another Westminster fix imposed which could leave Scotland worse off than at present – that is why independence and equality represent the best future for Scotland, and why the SNP are the leading party in Scotland.”

Mr Hosie also seized on the Lords report suggestion that some parts of spending on the London Olympics, such as the £3 billion spent on regeneration, should be considered English spending rather than UK spending and should therefore have a Barnett consequentials.

Mr Hosie added:

“The SNP has consistently argued that spending on regeneration projects in London in advance of the Olympics should be subject to Barnett consequentials, and the Lords report reinforces this. It is clear the current arrangements are not working, and we will want to be sure that Scotland has not been swindled out of our Barnett share.