Spending constraints
Here鈥檚 a little steer for you from inside the tent. I understand Ministers at Holyrood are fighting a battle against attempts by the Treasury to apply extra tough spending constraints in Scotland.
Stop, Brian, I hear you yell (or yawn). Old news. We鈥檝e heard all this before. We know that the Treasury will announce the details of its Comprehensive Spending Review (CSR) next month - and that it鈥檚 going to be tighter than in the past.
Ah, but did you know that it鈥檚 presently scheduled to be extra tight in the devolved territories of Scotland, Wales and Northern Ireland?
In the March Budget, Gordon Brown - then Chancellor - indicated what he had in mind for public spending for the three years from 2008: the period covered by the CSR.
He intended 3% 鈥渧alue for money鈥 savings from existing budgets - together with 2% growth in public spending allocations.
In addition, he announced extra cash for education and security. But the core message was that the new spending round would add up to inflation plus 2% over the three years. Tighter than in the past.
However, I understand that the devolved territories - including Scotland - have now been told to expect that their budgets will rise by inflation plus 1%, rather than 2%. Tighter than elsewhere.
The Barnett formula - which computes annual variations in the budget, comparable to England - remains untouched.
Rather, the Treasury is proposing to reconfigure the base upon which Barnett is calculated.
Which means? In relative terms, less for Scotland. Less to spend on public services.
Stand by for substantial protest from Scotland - in consort with Northern Ireland and Wales. Indeed, it鈥檚 already under way.
I'm 
Comments
So Gordon Brown is finally pandering to the middle english vote by giving Scotland, Wales and NI less.
is anyone telling Gordon Brown how not to play into AS hands ?
Clearly the ground rules are being changed to make things more difficult for an SNP Administration, as was not the case when Jack the Lad was in power; this will also have the effect as you rightly say of reducing the spending power under Barnett without changing the actual formula.
Although this should go some way to appease the gaggle who constitute the permanent 412 English majority of MPs at Westminster, the truth is they will continue to argue on the headline figures of Barnett as this serves their case better than the actual calculation.
Oh dear Gordon - this is not going to help Wendy at all, no not at all, especially if Wee Eck starts suggesting Scotland should get 90% of the extra territorial income as well as fiscal devolution.
Dear, dear Gordon; you are going to need more than a photo call with Darling's cat to get round this one.
What with PFI unravelling as studies use words like albatross, reduction of services, unsustainable within current budgets for new builds in both the NHS and Education world............
If Gordon Brown is indeed intending to reduce Scotland's budget from what he announced before the SNP election win, then this can surely only be seen as a spiteful attempt to hinder an opposition party in power.
The problem for him, though, is that the Scottish public are not daft and will (rightly) see this as also harming the country; his (former)country.
The question in the minds of the public is whether he is simply being unfair to the non-English nations of the UK (for votes), or is this punishment (for Scotland voting down Labour).
The effect may make the SNP's job of governing more difficult, but it will also make more potent the arguments of how Scotland could do better on its own.
re #1 - the devolved nations are not getting less (i.e. a cut in what they get now) they are not getting as much of an increase.
This will some way to even up the disparity in spending per capita accross the UK. Even allowing for the remotness of much of Scotland and the hight costs associated with this etc the per capita spend is still greater than in other regions of the UK.
Can we now get a referedum on independence? I suspect that this news will make a few minds up. Anyone continuing to support the union must ask the question "how is Scotland benefiting from the union?" Clearly labour is in the huff and are basically sticking it to us of daring to vote in the SNP. Clearly a move to keep middle England happy. What about WA? will she be protesting at the lack of funds for Scotland.
Cheers Brian for the inside story
Labour seem intent on self destruction in Scotland. Mrs Thatcher would have been proud of this one!
Should be worth a percentage point or two to the SNP in the polls.
London Labour just don't seem to get it!
This is a question which will rage for ages. Scotland do get more money from Westminster than they pay in taxes; but that doesn't tell the whole story.
Scotland is a poorer part of the UK, so it should have more public money spent in it per head than England - just like Liverpool or London.
Unfortunately, i fear that this issue will be simplified, and politicised by both English and Scottish MPs/MSPs to press their own agendas. In the end that will just aggravate the people in England who think Scotland get too much money, and also the people in Scotland who think they don't get enough.
I see some rough times ahead.
More evidence that the UK is effectively bust and that it's Gordo's fault.
I read that the trade gap reached record levels in July, household debt continues to rise, corporation tax take is down because of all the companies that have been flogged off to overseas buyers and that our wonderful financial institutios (highly praised by Gordo) are in deep doodah because they've got involved in the gambling market of debt swaps involving US mortgages.
Just to add to Gordo's woes we've got a couple of wars to pay for, some shiny new Trident missile subs we'll probably never use and a couple of aircraft carriers to carry American aircraft not British ones.
Independence please. We need to get out of this lunatic asylum before the inmates take over completely. Or have they already?
Does this not play right into the nationalists hands? "If we had our oil and our own fiscal autonomy we wouldn't have to lay off all these nurses that the big bad pseudo englishman unionist Gordon Brown is making us lay off..."
Chris
This is quite simply scandlous. Gordon Brown is trying to exact petty revenge for his party's defeat to the SNP in May. The only people that lose out are the people of Scotland.
I would expect to see a three fold attack on Westminster by the political leaders of Scotland, Wales and Northern Ireland...... and quite right to.
There can be little surprise in this. I agree that Gordon Brown is just pandering to English voters. The questions Gordon Brown and Wendy Alexander must ask themselves is:
How many votes in Scotland will Labour lose over this? With Alex Salmond in charge up here the chances are that will be high.
and;
Will English voters be satisfied by these cuts? I doubt they will. They will simply clamour for more cuts.
It could prove a LOSE-LOSE strategy for Labour.
Gordon is really on to a vote loser here. Does he really think that cutting the amount of money given to scotland by westminster is going to endear him to the Scots. This is an attempt to wreck Alex Salmond's plans to improve the lives of the nation of Scotland. If you haven't already read it folks i suggest reading the McCrone report it may provide some insight into what Gordon and London Labour are up to.
Read it here
brian,
it would seem that we ar'nt being
allowed to spend our pocket-money
on what we want(ie. lower tax goodies for scots.) oh no!! we spent
it as big daddy says, this is a no breaner, its a selfish gready plot
to garner votes for paw broon,
never mind we have our blessed savour comming along on friday, we'll be rescued, and the HUNGRY CATERPILLER AND THE GOOD KING AND QUEEN WILL RIEGN FOREVER.
THE END
Labour in the huff cut promised spending to spite their political opponents who won the last Scottish general election. This must be a vote winner for Gordon and his lackeys - just not north of the border!
It is just like the issue with the council-tax rebate - ignoring the need to keep the tax unchanged to have a rebate - Scotland would only recieve so much money if Labour won (or at least got their own way).