UK ministers last night sought to claim Scotland was benefiting from the Union, as new figures revealed a widening gap in tax payers’ money spent on Scots compared to people in England. Treasury documents published yesterday showed that while government spending per head dropped everywhere in the UK in 2011-12, it fell nearly twice as quickly per head in England as in Scotland.
While Scots saw an average of £10,088 spent on them people in England made do with just £8,491. It means the ‘per person’ gap in spending between Scotland and England is now £1,597.
Chief Secretary to the Treasury Danny Alexander claimed last night the figures demonstrated that Scots continued to see a “real financial benefit” from being part of the UK.
That was given short shrift by the Scottish Government, however, which pointed to other official figures showing how Scotland paid a larger percentage of UK tax revenue than the share of UK expenditure it received back. However, these words seem to ignore the fact that the overall rate of taxes in England are actually higher.
The figures show that Scotland’s spending has had the advantage over England in the last 30 years – a quirk caused by the workings of the Barnett Formula, used to divide up government funding to different parts of the country.
That system, calculated on 30-year-old population shares, has long handed Scotland a spending advantage, but that gap has reduced in recent years, as Scotland is given a lower share of spending increases than they have enjoyed before.
However, last year, that system of convergence went into reverse as, instead of spending increases, real-terms spending cutbacks were implemented. That led to some huge anomalies on spending around the country, with people in London suffering a £400 per head drop in spending in 2011-12, nearly four times the cutbacks experienced in Scotland.
It now means that Scotland is second only to Northern Ireland in the league table on government spending per head, which counts both the £30 billion spent by the Scottish Government and UK government spending such as unemployment benefits and pensions.
Ken Macintosh, Labour’s shadow finance spokesman, added: “These figures clearly show Scots not only get higher levels of public spending than the rest of the UK, we also are seeing it decline at a slower rate. It just goes to show that what the SNP and anti-UK parties have to say on Scotland’s finances is just a bunch of hocus-pocus.”
For Years the CEP has been highlighting the injustices of Devolution that the people of England face. The facts are sobering and this situation put simply is ‘wrong’. The CEP demands equality and fairness for England. After reading this article I urge you to ask your family and friends to join the CEP. The English nation needs its own government and first Minister otherwise this unfair and unjust situation will continue.