The Adam Smith Institute
The Adam Smith Institute is the UK's leading innovator of free-market policies. Named after the great Scottish economist and author of The Wealth of Nations, its guiding principles are free markets and a free society. It researches practical ways to inject choice and competition into public services, extend personal freedom, reduce taxes, prune back regulation, and cut government waste.

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Patronising
By Dr Eamonn Butler

Britain's Conservatives are complaining that public spending ruthlessly favours areas loyal to Chancellor Gordon Brown's own party.

The Public Expenditure Statistical Analyses, published by the Treasury, shows that this year's public spending in (Labour-dominated) Scotland, for example, will be £1,368 per head more than in (Conservative-dominated) England. Scotland will get £7,635 per head, England just £6,267. And within England it is the same: the (overwhelmingly Labour) North-East will get £7,223 per head, a whopping £1,739 more than the (overwhelmingly Conservative) South-East with just £5484.

Some think the disparity even more unjust because Scottish MPs in the UK Parliament can vote on England's health, education, and other policies, but English MPs have no say over Scotland's devolved systems. Already, the government has relied on the votes of Scottish MPs to get get through its policies for England - like foundation hospitals. That is likely to be more and more common now that the government has a more slender majority.

Among the critics are Lord Barnett - who, back in 1978, invented the formula that diverted more public money to Scotland. "It was never meant to last this long," he said. "It has become increasingly unfair."

But while Mr Brown's voters may thank him for the extra cash, others ask: does it do any good? This year, some £1,653 will be spent per head on health in Scotland, against just £1,350 in England. But, say critics, health outcomes in Scotland are actually worse.



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Adam Smith (1723-1790)
Adam Smith was the great Scottish philosopher and economist best known for "The Wealth of Nations", his pioneering book on free trade and market economics.

A wide selection of material about Adam Smith is now available on the Adam Smith website. This includes the full text of his two major works, The Theory of Moral Sentiments and The Wealth of Nations.