Scottish independence: What is the Barnett Formula?
The "Barnett Formula" has been a source of much debate during coverage of Scottish independence referendum results – but what is it, who came up with it and what does keeping it on in the event of a No vote mean for the rest of the UK?
The Barnett Forumal is the mechanism used by the UK government to decide how to allocate public spending to Scotland, Wales and Northern Island. Between them, the three regions get just over half of the UK's total public expenditure.
The idea was devised in the late 1970s by Joel Barnett, the Treasury minister under Harold Wilson. In recent weeks it formed the centrepiece of a pledge by the UK's three main party leaders designed to persuade Scottish voters to stick with the union.
The government points out it can't allocate the same per head of the population to each territory because of the differing needs of various populations.
Nevertheless, if you take the average amount the UK spends per capita spending and index it at 100, then here's how each country compared in 2007-08:
That means in 2013, the government spent 20 per cent – or £1,623 – more per person in Scotland than England.
The formula is made up of three elements:
1. What share of the population each region has
2. Any changes in spending planned by government departments
3. The "comparability percentage" – a figure