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Goschen formula
The Goschen formula (or Goschen proportions) was a ratio devised by George Goschen when Chancellor of the Exchequer, to allocate funding for services in Scotland and Ireland compared with England & Wales, and used from 1888.〔HoL Select Committee on the Barnet Formula, Paragraph 23, http://www.publications.parliament.uk/pa/ld200809/ldselect/ldbarnett/139/13907.htm〕
==Original formulation==
The Goschen proportions were originally set at 80:11:9, for England & Wales, Scotland, and Ireland respectively.〔 According to the TaxPayers' Alliance, 'Goschen claimed that reflected the proportions in which the three major territories paid probate duty, although he never produced figures, and it seems more likely it was a political fudge',〔TaxPayers' Alliance, ''Unequal Shares: The Definitive Guide To The Barnett Formula'', p.5, PDF: http://tpa.typepad.com/home/files/unequal_shares_the_barnett_formula.pdf Webpage: http://old.taxpayersalliance.com/reports/2008/09/unequal-shares-definitive-guide-barnett-formula.html〕 and this relationship with probate duties is supported by the National Assembly for Wales.〔''The Barnett Formula: funding the devolved administrations'', chapter 3, paragraph 1, http://www.assembly.wales/09-012.pdf〕 However, according to the House of Lords Select Committee on the Barnett Formula〔 and the IPPR,〔''Fair Shares? Barnett and the politics of public expenditure'', Box 3.1, http://www.ippr.org/publications/fair-shares-barnett-and-the-politics-of-public-expenditure〕 the ratio was based on population shares.
The populations of England & Wales, Scotland, and Ireland in the 1891 census are given as 29.0m, 4.0m and 4.7m respectively.〔http://homepage.ntlworld.com/hitch/gendocs/pop.html〕〔http://www.visionofbritain.org.uk/census/table_page.jsp?tab_id=EW1921GEN_M1&show=〕 This means that Goschen initially gave England & Wales 80% of the funds for 76.9% of the population, Scotland 11% of the funds for 10.6% of the population, and Ireland 9% of the funds for 12.5% of the population.
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