Bypassing Barnett: the comprehensive spending review and public expenditure in Wales

Under UK devolution, public expenditure is distributed to the devolved administrations by means of the population-based Barnett formula. However, in the July 2000 Comprehensive Spending Review (CSR) the Treasury bypassed the operation of the Barnett formula to determine public expenditure levels in Wales. This was necessary in order to enable Wales to access European Objective 1 funds for economic regeneration. In so doing, the UK government has set a precedent which is destined to accelerate demands for a thorough and independent review of regional public expenditure needs.