Blog: Brexit Internal Market Bill may be attempt to bypass Barnett formula, MSPs told – The National

CONTROVERSIAL new legislation proposed by Boris Johnson’s Government could be a way of eroding the Barnett formula – the process for determining funding for Scotland and the other devolved nations – MSPs have been warned.

He claimed the UK Government could even directly fund bodies set up by Scottish ministers.

Bell told the Scottish Parliament’s Finance and Constitution Committee that new spending powers in the legislation raise “possibilities for bypassing effectively the Scottish Government”.

The University of Stirling academic said: “The powers proposed in the bill are extremely wide in relation to financial support.

“The UK Government is now taking power effectively to spend across a wide range of different topics and deliver that money to ‘any person’, that is the phrase that is specifically used within the bill.”

READ MORE: Internal Market Bill aims to distract from UK’s coronavirus failures, EU says

He said this proposal has been “parachuted into the debate without any previous discussion or negotiation”.

This could result in UK ministers allocating cash to areas usually funded by the Scottish Government, with concerns it might be a way of “getting around the Barnett formula”, which also determines Westminster funding for Wales and Northern Ireland.

Bell said he believes it “may still be possible” that non-departmental public bodies – which he said were like “the children of the Scottish Government” – could receive funding from the UK Government under the legislation.

“I’m thinking of bodies like Skills Development Scotland, which have received large amounts of European funding in the past,” he added.

Bell told the committee: “The Barnett formula is not written in law, this may be a way of trying to erode it.”

Meanwhile, committee convener Bruce Crawford said he is “genuinely dismayed” UK Business Secretary Alok Sharma has refused to make time to give evidence to MSPs about the legislation.

It comes after an email from Sharma’s office explained that “given the tight legislative timeline for the Bill, it is with regret that the SoS (Secretary of State) will be unable to attend this committee session”.

Crawford said: “The UK Internal Market Bill will affect many people’s lives and livelihoods in Scotland.

“It will also have a profound impact on the devolution settlement and on the powers of the Scottish Parliament.

READ MORE: Disbelief as Boris Johnson claims Scots voted against new powers in 2014

“The UK Government already recognises and accepts that all aspects of this bill require the legislative consent of the Scottish Parliament.

“I am genuinely dismayed, therefore, that the Secretary of State for Business will not make time to give evidence to our committee, as we consider whether or not to recommend that consent be given to this UK bill.”

But Cabinet Office minister Michael Gove – who has previously said the legislation will result in a “power surge” to the devolved administrations – will be available to give evidence to the committee.

The Scottish Government has said it will not give its consent to the legislation, which has passed its first Commons hurdle despite a Tory rebellion after ministers admitted the bill breached international law.

NFU Scotland policy director Jonathan Hall also gave evidence to the committee. He said part of the bill – which aims to ensure smooth trade can continue between the four UK nations when the EU transition period ends – could be replaced with voluntary frameworks.

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