I once heard the Barnett formula described as being like the Schleswig-Holstein question in European politics, in that only three people ever understood it: one is mad, one is dead and I have forgotten it, but I will try to remember enough of it to allow the hon. Gentleman to understand how it works. For example, additional public spending on health in England has a knock-on effect in Scotland, Wales and Northern Ireland. The reverse does not apply—it is not a question of allocating for Northern Ireland and then reverse-allocating England.
The Minister for Small Business, Industry and Enterprise (Anna Soubry)