Speaking ahead of a meeting of the Scottish Parliament’s Finance Committee, Liberal Democrat Finance spokesperson Liam McArthur called for a radical review of the way money for Scotland’s public spending is allocated from the UK Treasury.

Oxford University Professor Iain McLean is expected to tell the Finance Committee today that the Barnett Formula is ‘perverse’ and ‘inefficient’.

Commenting, Mr McArthur said:

“Liberal Democrats are clear that there needs to be a major review of the way that Scotland’s budget is decided.

“The current system, the Barnett Formula, has been effective in providing stability during the early years of the Scottish Parliament. However, it is time to look again at how we fund our policy priorities.

“Liberal Democrats think that the Scottish Parliament should raise as much of its own spending as is practical. That will increase accountability and give Scotland the powers needed to improve the economy and tackle the challenges we face.

“That is why we are leading the campaign for more powers for the Scottish Parliament. We have re-convened the Steel Commission to work alongside and support the Calman Commission, which was set up to examine the case for more powers for the Parliament.

“It’s high time we completed the Home Rule settlement with more financial devolution across the UK.”