The Primacy of Politics Intergovernmental Fiscal Relations in the UK and Australia

Interest in Barnett formula reform is on the rise again, particularly because of
changes in the parties in power in the devolved governments of Scotland and
Wales, and the tighter public spending heralded by the recent Comprehensive
Spending Review. This article looks at whether, and to what extent, the introduction of an alternative fiscal allocation system would remove the primacy of politics from
the UK’s resultant intergovernmental fiscal relations, through examination of the
Australian experience, especially the role of Special Purpose Payments.