Greater Manchester mayor Andy Burnham has called for the English equivalent of the Barnett formula to ensure regions outside of London receive their fair share of funding.
Speaking at the event in Newcastle, Mr Burnham and an English version of the funding formula would ‘end the tyranny of the Whitehall bidding culture where pots of funding are set at a national level and everyone else wastes time and resources bidding and competing’.
The Barnett formula is a mechanism used by the Treasury to automatically make sure that any extra public spending in England is matched by additional funding for Scotland, Wales and Northern Ireland.
The mayor said an English equivalent to the Barnett Formula for different regions would guarantee that investment is made in places outside of London as a consequence of any major investment in the capital.
Mr Burnham also made the case for a reformed form of city-regional government across the United Kingdom, wresting power from Whitehall and placing it in the hands of local decision-makers who can tailor solutions fit for their people.
He said that ‘to survive, the union must embrace a more federal form of government’ and that a more federal structure like those practised in many European countries would lead to greater representation of the nations and city-regions, with the approach ‘hard-wired’ into the structures of the UK government.
‘The hoarding of power at a national level is deeply unhealthy and the UK must embrace a more federal form of government, much deeper devolution to all parts of the UK and an English version of the Barnett Formula,’ said Mr Burnham.
‘If power is held centrally the consequence is deeper divisions along party political lines, or worse nationalism,’ he added.
‘Power placed beyond central governments gives it to the people on a regional, city or even town level, and helps create a sense of pride in place. Pride in where you live or work can act as a unifier in these divided, uncertain times and crucially, it is the best way to ensure that the United Kingdom survives as one country.’
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