MERSEYSIDE is trapped in a “Catch 22” situation by today's report, which brilliantly strips the ridiculous Barnett Formula of any lingering credibility.
The Formula is more likely to die quickly if the Conservatives win the next election – but England's poorest parts are less likely to receive Scottish-style spending from David Cameron.
The Tory leader has hinted a review is necessary and has less to lose, given the lack of Scottish Tory MPs.
In contrast, Gordon Brown, and his equally-Scottish Chancellor, Alistair Darling, are in complete denial about the urgent need to recast UK spending.
The PM has twice told the Commons the Barnett Formula is based on need, which is 100% wrong.
A "factual" paper on the Formula, promised by the Treasury last summer, has yet to appear and the same attitude was on display during evidence before the peers.
The Secretaries of State for Scotland, Wales and Northern Ireland ganged up to insist the Barnett Formula was perfect.
The Daily Post also revealed, in late 2007, that Downing Street was bullying Lord Barnett and Labour MPs to try to prevent the investigation.
But, while the Tories might scrap the Formula, it does not automatically flow that Merseyside will suddenly receive its missing bonanza.
If – and it's a huge if – an independent Funding Commission was set up, it would simply take cash from Scotland and give more to England (as well as to Wales and NI).
It would then be a test of political will to ensure extra cash was spent closing the North-South divide, now so wide it resembles West and East Germany before the Wall came down.
