Tom Richmond: Time to scrap this Celtic fringe largesse

HERE'S some advice that could help David Cameron save £5bn after his "We've never had it so bad" speech on the economy.

He should scrap the outdated Barnett formula that sees Scotland, Northern Ireland and Wales receive an additional 5bn a year at the expense of the English regions.

Who says so?

None other than Joel Barnett, the Labour Treasury chief secretary in the 1970s and the architect of the original scheme that was based on population – and not the demand being placed upon key services.

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Yet changing demographics mean there are fewer people living in the provinces and, according to no less an authority than Lord Barnett, approximately 1,600 per head more is spent in public expenditure in Scotland than in England.

He was astonished that the coalition Government said, in these austere times, that they had no immediate plans to review the allocation of resources to the devolved governments at a time when Britain is being saddled with unsustainable interest charges on the national debt.

This is what Tory hereditary peer and spokesman Lord Rupert De Mauley – whose sole qualification for the Lords appears to be his ability to defend the indefensible – said in response to his Labour opponent: "I am sure that he will be among the first to acknowledge that, in the light of the grave financial situation that the country faces, it would be wrong for a new Government to rush to a decision on this complicated matter."

Excuse me? On the very same day that Cameron was warning that the cuts being planned will affect Britain for a generation, a Tory peer was turning down the opportunity to assist that process.

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It's quite simple. If the Scots, Welsh and Northern Irish want the

extra money, their devolved governments should be able to levy a surcharge on council tax bills.

The only conclusion that I can reach is that Cameron is reluctant to ask the Celtic nations to accept their fair share of the spending cuts in case he offends his Liberal Democrat coalition partners.

MY money is still on Doncaster MP Ed Miliband to become the next leader of the Labour Party.

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Having looked at Labour's electoral college arrangements, the Shadow Energy Secretary's affability is likely to see him pick up sufficient second preference votes to come through the middle and deny his elder and more experienced brother David.

Yet, until a new leader can put their own stamp on the party, Labour is going to have problem. For, when each of the leadership candidates admit mistakes, it immediately makes one question their motives for speaking out – and why they did not persuade Gordon Brown to change course.

And, whether Labour like it or not, this Parliament is going to be dominated by the harsh realities of the spending cuts.

Rather than saying they would delay action, or simply criticising the coalition, it would, perhaps, be helpful if Labour came up with some ideas of their own.

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As such, they should follow the lead of Barry Sheerman, the veteran Huddersfield MP, who has put forward a very useful proposal to boost manufacturing – and help those universities with funding difficulties.

He says universities need greater scope to encourage the creation of start-up companies that are geared towards becoming the manufacturers of tomorrow. He's right. It is also the first piece of positive

politics that I've heard from Labour since polling day.

THEY may be political opponents – but Labour's Hugh Bayley and Tory Julian Sturdy look like they will be a fine double-act who champion

York's interests.

As a temporary deputy speaker, Bayley, the City of York MP was in the chair when Sturdy – the new Outer York MP – made his maiden speech in a debate on Europe.

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It is custom for new MPs to make reference to their constituency –

and Sturdy highlighted Bayley's 18 years of service before adding:

"Given the links between our two seats, it is important that, on certain issues, politics is put to one side and we work together by putting the issues of our great city above party politics. I know we will be able to do that."

It is an example that all MPs should follow. Sadly, too few do.

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GIVEN the increased number of MPs and public servants who will be following David Cameron's lead and travelling on the railways, the National Audit Office is suggesting that seats should be stripped out

of carriages so more passengers can stand.

What does it say about the mindset of the railway industry when this approach is being advocated at a time when travellers are already paying a small fortune for the privilege of standing on commuter services in this region?

AN interesting take from Alistair Darling, the former Chancellor, on Gordon Brown's absence from the Commons since he lost the

election. "He's reflecting. But you can only look at the sunset over the River Forth for so long."

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It sounds like Brown's brooding could eclipse Edward Heath's sulk after the Tory left office in 1974.

OUTGOING Tesco boss Sir Terry Leahy may be a brilliant grocer – but he's a poor marketing man.

His World Cup promotional poster at my local Tesco in Leeds contains a prominent photo of Ben Foster – and the butter-fingered goalkeeper

did not even make the plane to

South Africa.