Thursday, 23 November 2017

Should there be a seperate "English" budget?

When David Cameron introduced English Votes for English laws he may have unwittingly  set a precedent that may in future  lead to there being to Budgets in the House of Commons

A UK budget followed by a Budget  for England  only.

  When the BBC announces  a

Budget gives extra £1.2bn to Wales and promises growth deals


Its only after further readin that Chancellor Phillip Hammond has said the Welsh Government will get an extra £1.2bn over four years as a result of his Budget.
The money will come to Wales because of extra spending on projects in England - under the so-called Barnett formula.

The cash amounts to a rise of around 2% in the Welsh Government's budget.
Welsh ministers said the additional cash would "do little to ease the pressure" on public services struggling after "successive cuts to our budget".

It has long been said that Wales benefits from the Barnet t formula  and is being subsidised by England .
But is this really true.


As Mabon ap Gwynfor points out
Hammond boasts that they have the two largest infrastructure projects in Europe: Crossrail and HS2, neither of which benefits Wales, both of which benefits London, yet we pay for them.
 But is that also not indicative of the whole UK budget? 

If Hammond or any English Chancellor  wishes to spend more money on the NHS he can raise money by raising taxes or national insurance payments , but he can also cut other services .

Unlike Wales, Scotland, or Northern Ireland  this includes such thingd in the defence budget   but also in many more areas that are not devolved,

Even if Wales   receives  an increase in its Barnett formula allocation as a result of the Chancellor increasing NHS spending  in England they may have to spend it elsewhere  in areas like Education.

If there was an English Budget we  would get a clear  indication on how infrastructure  projects are  being allocated and how this is going to be paid for for?

Even when it is clear that  Crossrail and HS2,are of no intermediate benefit to Wales t is part of UK spending and we have little say in it.

If we had a clear separation of a UK budget from one that is solely for the benefit of English voters  we may have more of an idea whether Wales is really  being subsidised s by England or starved of investment.

Of course we will still have the argument that what benefits the City of London benefits  the rest of the UK.

But an "English" budget  would not only allow the devolved governments  to see where the money is going, but also those in England in areas outside London and  the South East  a chance to note how they are also being left out.



   




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