Research output

Article in Journal ()

Allocating Grant to the UK's Devolved Territories by Needs Assessment: Lessons from School Funding Formulae in England and Scotland

Citation
King D & Eiser D (2017) Allocating Grant to the UK's Devolved Territories by Needs Assessment: Lessons from School Funding Formulae in England and Scotland, Fiscal Studies, 38 (1), pp. 81-109.

Abstract
The UK's devolved administrations (DGs) receive block grants to finance almost all their expenditure. The Barnett formula used to calculate these grants is often criticised because it does not consider the DGs’ spending needs. However, the feasibility of allocating block grants by needs assessment is often questioned, given the contestability of spending needs. This paper compares the formula used within England to assess the education spending needs of local authorities there with the equivalent Scottish formula, by using each formula in turn to calculate the relative spending needs of the UK territories. The rationale is to consider how similar the two formulae are in how they estimate the territories’ relative spending needs for education, a major responsibility of the devolved governments. 

The results show that the English and Scottish education allocation formulae produce similar estimates of the territories’ relative education spending needs. This suggests that it may be more feasible to allocate education resources to the UK's devolved territories based on needs assessment than some have suggested. The results also suggest some inequity in current patterns of education spending across the UK.

Keywords
Barnett formula; spending needs assessment; school funding; H72; H75; R50

StatusPublished
AuthorsKing David, Eiser David
Publication date03/2017
Publication date online14/12/2015
Date accepted by journal14/12/2015
PublisherWiley-Blackwell for Institute for Fiscal Studies
ISSN 0143-5671
LanguageEnglish

Journal
Fiscal Studies: Volume 38, Issue 1

© University of Stirling FK9 4LA Scotland UK • Telephone +44 1786 473171 • Scottish Charity No SC011159
My Portal