The system for allocating public expenditure to the nations and
regions of the UK has broken down. Money goes to Scotland, Wales
and Northern Ireland by the notorious Barnett formula, but this is
collapsing and cannot last long. Money goes to the English regions
by poorly-understood formulae that work badly. People in every
region think that the system is unfair to them. The Fiscal Crisis
of the United Kingdom suggests how the system could be fixed,
drawing lessons from Australia and Canada. It recommends a
Territorial Grants Commission.
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