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| NI cash plan 'should be ditched' | NI cash plan 'should be ditched' |
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| The way government money is distributed to Northern Ireland, Scotland and Wales is unfair and needs to change, a House of Lords committee has said. | The way government money is distributed to Northern Ireland, Scotland and Wales is unfair and needs to change, a House of Lords committee has said. |
| The committee's report said the Barnett Formula, which allocates money across the UK, should be scrapped and a new UK funding commission set up. | The committee's report said the Barnett Formula, which allocates money across the UK, should be scrapped and a new UK funding commission set up. |
| The committee said Scotland and England had lower needs per head of the population compared to NI and Wales. | The committee said Scotland and England had lower needs per head of the population compared to NI and Wales. |
| Peers said Scotland had been given more funds "than appeared to be justified". | Peers said Scotland had been given more funds "than appeared to be justified". |
| Successive governments have used the Barnett Formula to allocate money to Scotland, England, Wales and Northern Ireland. | Successive governments have used the Barnett Formula to allocate money to Scotland, England, Wales and Northern Ireland. |
| The formula, named after Labour minister Joel Barnett, was meant to be a short-term fix but it has been in place for 30 years. | The formula, named after Labour minister Joel Barnett, was meant to be a short-term fix but it has been in place for 30 years. |
| It is now time to scrap the formula and replace it with a clear system of determining a grant of funds for each of the devolved administrations based on their actual needs Lord RichardCommittee chairman | It is now time to scrap the formula and replace it with a clear system of determining a grant of funds for each of the devolved administrations based on their actual needs Lord RichardCommittee chairman |
| The report is expected to prove controversial and peers accept it is unlikely to be acted upon before the next general election. | The report is expected to prove controversial and peers accept it is unlikely to be acted upon before the next general election. |
| The committee, which has been investigating the issue since last December, included former Ulster Unionist leader Lord Trimble of Lisnagarvey, Lord Smith of Clifton and former chancellor Lord Lawson. | |
| Lord Richard, who chaired the committee, said the Barnett Formula was intended as a short-term fix but had lasted 30 years because it was easy to administer and convenient for Treasury ministers. | Lord Richard, who chaired the committee, said the Barnett Formula was intended as a short-term fix but had lasted 30 years because it was easy to administer and convenient for Treasury ministers. |
| "After 30 years of increasing allocations year on year, and in the light of possible cuts in public spending, it is now time to scrap the formula and replace it with a clear system of determining a grant of funds for each of the devolved administrations based on their actual needs," he said. | "After 30 years of increasing allocations year on year, and in the light of possible cuts in public spending, it is now time to scrap the formula and replace it with a clear system of determining a grant of funds for each of the devolved administrations based on their actual needs," he said. |
| The committee suggested that the UK funding commission should undertake an assessment of relative need, now and in the future, and undertake periodic reviews as well as publishing annual data about the allocation of funding between the devolved administrations. | The committee suggested that the UK funding commission should undertake an assessment of relative need, now and in the future, and undertake periodic reviews as well as publishing annual data about the allocation of funding between the devolved administrations. |
| Stormont Finance Minister Sammy Wilson welcomed the report and said it showed that Northern Ireland had received less money in recent years than it was entitled to. | Stormont Finance Minister Sammy Wilson welcomed the report and said it showed that Northern Ireland had received less money in recent years than it was entitled to. |
| He was doubtful, however, if the report's recommendations would ever be put in place. | He was doubtful, however, if the report's recommendations would ever be put in place. |