Scottish Labour today reacted with fury to reports that the Tory – Lib Dem government is planning to scrap the Barnett Formula. Experts have warned that replacing the funding mechanism for Scotland with a so-called “needs based” system would see reductions of up to £4.5 bn in the Scottish budget.
 
Scottish Labour Leader Iain Gray said:
 
"Many Scots feel betrayed by the Lib Dems for doing a deal with the Tories because they have so little in common, but they both want to scrap the Barnett Formula.
 
"That could torpedo Scotland's budget and lead to unimaginable cuts to public services here.
 
"The Barnett Formula has served Scotland well over many years.
 
"The changes the Scottish Parliament have backed with cross party agreement is the Calman Commission.
 
"The Lib Dems should focus on that.
 
"If they plan to replace a system that is fair to Scotland with a system that is unfair, they will reap the price of their decision at the ballot box - but it is Scottish families and communities that would suffer."
 
Andy Kerr MSP, Shadow Cabinet Secretary for Finance and Sustainable Growth, added:
 
"The nice Lib Dem mask has slipped.
 
"We know this plan was in the Lib Dem manifesto and now they are clearly laying the ground.
 
"Danny Alexander should ashamed for allowing this to go ahead, with anonymous Whitehall briefings leaking things to papers.
 
"Scots are furious at the Lib Dems for propping up the Tories in government.
 
"If they now take forward plans to cut the very deal which gives Scotland the funding necessary to reflect our needs, geography and population, they will be punished by all the people of Scotland.
 
"Experts warn that their plans would mean up to £4.5 bn cuts to Scotland.
 
"That would mean serious, sustained and in many ways unimaginable consequences for Scotland."

20 May 2010