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Scotland prepares for day of destiny

Scotland's decision day has arrived, with voters north of the border going to the polls today to determine if the country should remain part of the United Kingdom or not.

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What is the Barnett Formula?

David Cameron, Ed Miliband and Nick Clegg have pledged to keep the Barnett Formula in the event of a No vote in the Scottish referendum.

But what is it?

  • The Barnett Formula has been used to distribute public money between England, Scotland, Wales and Northern Ireland
  • Population shares and changes in spending will automatically be reflected in the amount allocated to devolved administrations
  • It was initially designed by former Chief Secretary to the Treasury Lord Barnett as a temporary measure but has lasted more than 30 years
  • Critics of the system argue that Scotland is allowed to spend a greater amount on services per person than in England

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