BRITAIN’S likely next prime minister wants to “tear up” the funding mechanism for Holyrood, The National can reveal.
It has emerged that Andy Burnham, who could be handed the keys to Downing Street in a matter of weeks, wants to bin the Barnett Formula, which works out how much money the Scottish Parliament gets from Westminster.
In his 2024 book Head North, co-authored with Liverpool mayor Steve Rotheram, Burnham said that “the time has come to tear up” the formula.
The former Greater Manchester mayor said: “The time has come to tear up the Green Book [official UK Government spending guidance] and the Barnett Formula and replace them with a modern funding formula which works for the English regions and the home nations.
"This is critical if we are to lay the foundations to make Britain a more successful nation in the 21st century.
Burnham, who will succeed Keir Starmer as prime minister barring a major upset, views the Barnett Formula as a key part of the reason English regions have been underfunded and argues that they have borne the brunt of austerity, while Scotland, Wales, and Northern Ireland get “protection” from the formula.
The formula calculates “consequentials” which flow from UK Government spending in devolved areas, which are then passed onto the national parliaments to spend as the devolved administrations see fit.
Burnham said: “As we've explained, the Green Book drags funding towards London and the South East. This is then badged as ‘English’ funding. The Barnett Formula then adds on consequential funding to the home nations as a result of this.
"While it aims to protect the devolved nations in terms of funding, there is no corresponding funding protection for the English regions. This is why the English regions continually miss out.”
Towards the end of the book, Burnham underlines the centrality of his opposition to the Barnett Formula to his vision.
He writes: “Our passionate belief is that the roadmap set out above is a journey towards a more functional, contented nation. It would allow for more transparency over the allocation of funding between the English regions and home nations.
“It would allow the Barnett Formula to be replaced with a new arrangement that is demonstrably fair to all.”
The proposal has led to claims the Makerfield MP is “playing Scotland off against English regions” and to calls for him to give the Scottish Parliament full fiscal powers.
SNP MSP Alyn Smith told The National: “If Andy Burnham is so intent on scrapping the Barnett Formula why doesn't he instead transfer the full fiscal powers to the Scottish Parliament?
“Andy Burnham has already made more U-turns than a learner-driver in a cul-de-sac – so no doubt another one is incoming.
“Westminster's record of instability is damaging Scotland's interests. For years, Scotland has been hammered by Westminster austerity cuts, Brexit and damaging decisions that have wiped billions of pounds from our economy and sent the cost-of-living soaring.
“Scotland needs independence to secure a fresh start from the constant chaos of Westminster control and to build a better future.”
The Scottish Greens called on the would-be prime minister to focus on avoiding public spending cuts altogether rather than funding formulas.
Gillian Mackay, the party’s co-leader, told The National: “Playing Scotland off against English regions isn’t the answer. If Andy Burnham is going to stick with Keir Starmer and Rachel Reeves’s fiscal rules then he’s guaranteeing a continuation of austerity.
“It doesn’t matter what formula is in place. If you are continuing to make cuts and underfund public services, then nothing changes.
“What Andy Burnham should focus on is taxing wealth to bring about a fairer society for everyone across the entire UK. Making the super-rich actually pay their fair share would bring real positive change for our society, without the need to make cuts that hurt ordinary people and families.”
She said that the ambitious MP should not be “dictating what is fair” from Westminster while countries’ demands for greater devolution of power are ignored.
Mackay added: “I hope that Andy Burnham keeps in mind that millions of people in Scotland, Wales and Northern Ireland also have votes, and they don’t like being talked down to or attacked by Westminster.
“It’s probably not the right message for him to be dictating what is fair and what is not to countries who have long called for more powers devolved to them.
“The people of Scotland have elected the largest ever pro-independence majority in our parliament’s history, we should be able to choose our own future.”
Burnham has so far been coy about his plans if he becomes prime minister.
During the Makerfield by-election campaign, which he used as a springboard to challenge Starmer for the premiership, he walked back comments he had made previously saying that Britain should not be “in hock” to the bond markets, which set the cost of borrowing.
He also committed to abiding by Reeves’s fiscal rules, which require day-to-day spending to be covered by tax income and for debt to fall as a percentage of the UK’s total economic output.
But Burnham has also signalled support for a more proactive state and favours public control, though not necessarily public ownership, of key industries.
The National asked Burnham’s spokesperson whether he still backed getting rid of the Barnett Formula and how he would replace it, but received no reply.
