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Territorial Resource Allocation in the UK: A Rejoinder on Needs Assessment

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  • Arthur Midwinter

Abstract

In a recent paper in Regional Studies Kevin Morgan argued for the replacement of the Barnett formula with a needsbased formula. However, the case for change is weak, in terms of both defining the problem and advocating a solution, and it fails to recognize the severe conceptual and measurement problems in such an approach. The current system has provided patterns of resource allocation which are reflective of differences in needs. It is a simple, transparent and objective approach, and has flexibility to deal with discrepancies through negotiation with the Treasury. A needs-based approach would not solve the problems of resource allocation, as it would provide scope for greater disagreement over the selection and weighting of indicators. Advocates of such an approach to territorial resource allocation have yet to provide a convincing rationale for change, or a coherent model of needs assessment for consideration, and are rash to assume that Scotland would lose, or Wales would gain from such changes on the basis of existing social, demographic and geographic differences.

Suggested Citation

  • Arthur Midwinter, 2002. "Territorial Resource Allocation in the UK: A Rejoinder on Needs Assessment," Regional Studies, Taylor & Francis Journals, vol. 36(5), pages 563-567.
    • Handle: RePEc:taf:regstd:v:36:y:2002:i:5:p:563-567
    DOI: 10.1080/00343400220137164
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    References listed on IDEAS

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    1. Kevin Morgan, 2001. "The New Territorial Politics: Rivalry and Justice in Post-devolution Britain," Regional Studies, Taylor & Francis Journals, vol. 35(4), pages 343-348.
    2. Arthur Midwinter, 1999. "The Politics of Needs Assessment: The Treasury Select Committee and the Barnett Formula," Public Money & Management, Taylor & Francis Journals, vol. 19(2), pages 51-54, April.
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    Cited by:

    1. Nuria Boch Roca & Marta Espasa & Daniel Montolio, 2014. "Should Large Spanish Municipalities Be Financially Compensated? Costs and Benefits of Being a Capital/Central Municipality," Hacienda Pública Española / Review of Public Economics, IEF, vol. 211(4), pages 67-91, December.
    2. Nuria Boch Roca & Marta Espasa & Daniel Montolio, 2014. "Should Large Spanish Municipalities Be Financially Compensated? Costs and Benefits of Being a Capital/Central Municipality," Hacienda Pública Española, IEF, vol. 211(4), pages 67-91, December.
    3. Gugushvili, Alexi, 2007. "The advantages and disadvantages of needs-based resource allocation in integrated health systems and market systems of health care provider reimbursement," MPRA Paper 3354, University Library of Munich, Germany.
    4. James Gallagher & Daniel Hinze, "undated". "Financing Options for Devolved Government in the UK," Working Papers 2005_24, Business School - Economics, University of Glasgow.
    5. David Heald & Alasdair Mcleod, 2005. "Embeddedness of UK devolution finance within the public expenditure system," Regional Studies, Taylor & Francis Journals, vol. 39(4), pages 495-518.
    6. Adrian Kay & Gillian Bristow & Mark McGovern & David Pickernell, 2005. "Fair Division or Fair Dinkum? Australian Lessons for Intergovernmental Fiscal Relations in the United Kingdom," Environment and Planning C, , vol. 23(2), pages 247-261, April.

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