Lord Barnett has died, but the funding formula he devised lives on, despite its many critics. Joe Willis reports

THE man who devised the controversial Barnett Formula - which critics claim has robbed the North-East of billions of pounds of public funding - has died aged 91.

Former Labour Cabinet minister Lord Barnett was the Treasury chief secretary in the 1970s who designed the system for allocating public spending to Scotland, Wales and Northern Ireland.

Lord Barnett's formula has remained in place, despite arguments that it was a temporary fix and ought to be reformed as it now produces unfair results.

Critics point out that it is based on an outdated measure of the relative population sizes of England and Scotland, rather than on need.

According to the latest figures, the Barnett Formula gives Scotland £733 more per person than the much poorer North-East - a figure that has more than doubled from £361 since 2010/11.

Nationally, the Local Government Association, has calculated that English communities lose out by £4.1bn a year.

One of the loudest critics was Lord Barnett himself who described the formula as a "national and personal embarrassment". He added that he had not expected it to last for three years, let alone 30.

In an interview with The Northern Echo in 1999, Lord Barnett said that when devised the system, Scotland was the poorest part of Great Britain - now it is more prosperous than many parts of England.

Lord Barnett said the old rules no longer applied and called for a "Barnett Formula mark two".

He said: "It would need to take into account the changes in the standard of living in Scotland and Wales, and reallocate public funding based on today's needs.

"Today, the allocation of public funds should take account of the lower level of incomes in the North-East."

Over the years The Northern Echo and others, have vigorously urged for the Government of the day to scrap the Barnett Formula and come up with a new, fairer method of calculating public funding.

However, the system continues to receive heavy-weight backing. During the Scottish referendum the leaders of the three main parties, David Cameron, Ed Miliband and Nick Clegg, vowed to retain the system, no-doubt mindful of fears in Scotland that a No vote would lead to a funding cut north of the border.

With Scottish residents voting to maintain the union, those in the North of England now left to enviously look on as Scots continue to receive greater public funding and more devolved powers which allow them a greater say in how they spend that money.

Despite his own protestations during his life, Lord Barnett's legacy looks set to live on long after his death.

Among those paying warm tributes to the former minister was Labour leader in the Lords, Baroness Royall, who described him as an "extraordinary individual".

"As an MP, minister and colleague in the House of Lords, to the very end he was diligently holding the Government to account and doing his best to ensure the best for the people of this country."

Lord Barnett's daughter Erica said he died peacefully at home on Saturday morning after a short illness.

She said he retained his interest in politics during his illness and "the last words he spoke to me were about the European Union budget".

She added: “The Barnett formula thing during the Scottish referendum was a great boost to him, because he was able to say what he had been saying for a long time to anybody who would listen, but this time people were listening.

“He had the chance finally to tell people just why he thought it was not only unfair but undemocratic.”

Shadow chancellor Ed Balls added: "Joel will be greatly missed by all who were fortunate enough to have met or worked with him.

"He was a distinguished chief secretary to the Treasury and parliamentarian who may have made light of being immortalised by a 'formula' but this is only a small part of his nearly six decades of service to the British people."