Public Expenditure
The question
To ask the Chancellor of the Exchequer, with reference to Item 26 of Table 5.1 of the Autumn Budget 2024, published on 30 October 2024, HC 295, whether the funding includes monies to devolved administrations under the Barnett formula.
Answered by Darren Jones
The allowance for the impact on public sector organisations in item 26 of Table 5.1 of the Autumn Budget 2024 does include funding for the devolved governments, which will be provided via the Barnett formula.
The UK Government will provide support for departments and other public sector employers for additional employer National Insurance contribution costs only. This funding will be allocated to UK Government departments, with the Barnett formula applying in the usual way. Given the impacts of this policy change will need to be worked through in further detail, this additional support has not yet been included in departmental or devolved government settlements in 2025-26.
The overall outcome of the Barnett formula on devolved government funding is that they all receive at least 20% more funding per person than equivalent UK Government spending in the rest of the UK.
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