Tom Griffin (London, The Green Ribbon): The Barnett formula for financing the UK's devolved governments is unfair and should be replaced, according to a report issued by IPPR North on Thursday.
Scotland and Wales have already begun considering alternatives. Northern Ireland should be looking to do the same, according to one of the report's authors, Iain Maclean in the Sunday Times today:
Because most of Northern Ireland’s money comes irrespective of what the Assembly does, Barnett is inefficient. If Northern Ireland controlled its own taxes, then the more the economy grew, the more government would get. That gives politicians incentives to encourage growth; to tax and spend responsibly; and makes them answerable to voters for their tax and spend decisions. All of that is utterly lacking now.
We therefore propose more fiscal autonomy for Northern Ireland, but given the disruption to devolution there in recent years, the new Assembly should be given time to bed down before further financial powers are devolved. The Assembly should then have the power to levy some taxes, or the right to collect the Northern Ireland share of some UK taxes such as Vat, or both. There would still be a block grant, but smaller than now. It would be calculated on a true needs basis and would therefore take account of Northern Ireland’s particular circumstances, as Barnett does not.
Over at Slugger, Belfast Gonzo questions whether the Stormont executive is ready for the extra responsibility fiscal powers would involve.
