Tories "must come clean" on 'no' vote cuts plan for Scotland as Labour shifts position

The Tories are facing calls to "come clean" on the cuts to Scotland’s finances that would follow a No vote after the Labour frontbench spokesperson for Scotland indicated that the current Barnett Formula could be scrapped. The SNP say that senior Tory figures, including Ruth Davidson, leader of the Scottish Tories, and Prime Minister David Cameron have repeatedly called for the current Barnett Formula to be abolished and Scotland’s funding to be slashed, despite the fact, the SNP say, that Scotland already generates a higher percentage of UK tax revenues than is spent in Scotland.

At Labour’s conference this week, Shadow Scottish Secretary and member of Labour’s devolution commission Margaret Curran strongly suggested the present Barnett Formula should be replaced - aligning her party with Tory calls which would result in Scotland’s funding being cut. Labour’s shadow Scottish Secretary suggested Scotland’s budget be cut by replacing the Barnett formula with a needs based system in the event of a No vote next year, stating: “I do believe that we should allocate public funding on the basis of need and it should not be around just a regional or a national demarcation around that.”

Her comments follow similar reports that Labour MPs outwith Scotland are unhappy with the present finding arrangements. Commenting, SNP MSP Stewart Maxwell who sits on the Referendum Bill Committee said: “Margaret Curran used their conference to suggest to Labour members that she was prepared to scrap the current Barnett Formula, which would result in a cut in Scotland’s budget in the event of a No vote." 

Continuing Mr Maxwell said: "She and her Tory partners in the No campaign must come clean about their plans to cut Scotland's budget. As a senior member of Labour’s devolution commission, it is inconceivable that Margaret Curran does not know exactly what it is Labour has planned – and it appears they will back the Tories’ cuts agenda. The Tories have long been leading the campaign for further cuts to Scotland’s budget, and now it seems they have secured Labour’s support. With even deeper budget cuts now apparently inevitable if Scotland votes No, the Tories need to use their conference to be straight with people in Scotland, and reveal what the anti-independence campaign’s cuts plans are."

Concluding Mr Maxwell commented: “Scotland already more than pays its own way, generating 9.9% of UK tax revenues but only seeing 9.3% of public spending spent in Scotland. With the No campaign parties committed to introducing a system that further penalises Scotland’s finances, it is clear that only a Yes vote will protect Scotland’s finances.”