Michael Fallon
Media playback is unsupported on your device
Video

Michael Fallon on Scottish funding and Barnett Formula

The Barnett Formula, which allocates money to Scotland, Wales and Northern Ireland is "actually declining in importance" and has been since devolution, said the defence secretary.

Some MPs are unhappy at the amount of money and powers offered to Scotland, but Michael Fallon said the complex funding agreement was becoming "a less important part of the framework".

Mr Fallon told Andrew Neil the formula helped address having "slightly different needs and geography" in the three smaller nations, and that Scotland, Wales and Northern "do better then England out of the formula".

2010 film: Change Barnett Formula, says Lord Barnett

More: Follow @daily_politics on Twitter and like us on Facebook and watch a recent clip and watch full programmes on iPlayer

Go to next video: Independent Scotland role in the EU?