Every state with devolved institutions of government, redistributes revenues among subsidiary jurisdictions. These allocations promote equalisation of resources — taking money from places with a large tax base and giving to those with less taxable capacity. Or they recognise differences in needs: grants compensate poor or scattered regions for the extra costs of achieving levels of welfare or public service provision available elsewhere.
The financial arrangements between Scotland and the UK as a whole are
not determined by either needs nor resources but by historic accident, based on a formula named for Joel
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