The Origins of the Barnett Formula
Labour won the General Election of 1966 with a comfortable overall majority of seats. All the events described in previous chapters seemed to belong to the remote past. Public finance in Northern Ireland was a private game between the Stormont government and the Treasury. The Goschen Proportion no longer formally applied in Scotland, but it had created the baseline for higher expenditure per head in Scotland than in England on all or most domestic services. This was a little secret, which Scottish Secretaries and St Andrews House knew and loved; the Treasury knew and hated it, but was powerless to do anything about it. Wales, meanwhile, had been given administrative devolution in 1964, as the result of a low-key manifesto commitment of the incoming Labour government.
KeywordsPublic Spending Vote Share Labour Party Credible Threat Fiscal Crisis
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