Barnett Formula

The Barnett Formula is a method used by the UK government to determine how much funding each of the devolved nations—Scotland, Wales, and Northern Ireland—receives from the UK Treasury. It allocates funds based on their populations and relative needs, ensuring these regions get financial support proportionate to their size and circumstances. The formula considers factors like historical spending and social needs, helping to maintain financial fairness and stability across the UK’s different areas. It’s a way to distribute resources equitably while acknowledging regional differences.