Why do the relative shares as calculated by the NRAC Formula differ from the actual shares that Boards receive of the final allocations?
This issue relates to the movement towards parity. The Scottish Executive Health Department (SEHD) phased in the Arbuthnott Formula by way of ‘differential growth’ whereby all Boards would continue to enjoy real-terms growth in their allocations year-on-year, with those above parity (i.e. above their target share) receiving less growth than those below parity until the new distribution was achieved. This is still ongoing as not all Boards have reached their “parity” positions (i.e. their target share).
