Do Scots get a better deal?
Updated on 14 June 2007
After the announcement that Scottish students won't have to pay university fees some are asking if England will subsidise this.
For English students who still have to pay £3000 it will be hard not to be envious. But, in other areas Scots do better. For pensioners in Scotland nursing care is free, while south of the border people are denied life saving drugs on the NHS that are available in the north.
As Scottish students save £2000, the cost to the tax payer will be £15 million, but some are questioning whether the money will come from England. MP Frank Field said: "Those are bills that will be paid for by English taxpayers and the resentment this engenders will increase."
England gets just over £6,361 per person to spend on public services, while in Scotland it is higher at nearly £7,600. The subsidy Scotland receives from England is £8.3 billion a year, meaning every Scot gets £1600 from their English neighbours.
The funding formula was devised by Lord Barnett 30 years ago, but he now believes it is out of date, saying: "It was never based on any need or equalisation or anything else, and that's why it is so desperately out of line now. It's got worse and it should be subject to a major review."
On the other side of the debate the Scottish National Party says that with North Sea oil and gas revenue that Scotland does pay its way.
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