5 days ago
Scots benefitting from 'economic strength' of UK as public spending remains higher north of the Border
The annual GERs report warned overall public finances in Scotland are "weakening, as expenditure grew faster than revenue".
Scotland continues to enjoy higher spending on public services than other parts of the UK, an annual assesment of the nation's finances has found.
The Government Expenditure and Revenue (GERS) figures for 2024-25 show Scots benefit by £2,669 more per head of additional spending compared to the UK average. But it also warned "overall public finances in Scotland weakening, as expenditure grew faster than revenue'.
The report is published by economists at the Scottish Government every August and is meant to enhance public understanding of fiscal issues north of the Border. The figures are regularly seized upon by both pro-UK and pro-independence supporters to justify their respective stances on the constitution.
Last year, £91.4 billion in tax receipts was raised in Scotland through devolved and reserved taxation - compared to £117.6 billion in public spending. That works out to eight per cent of UK revenue and nine per cent of spending.
The figures also reveal the country's notional deficit, or net fiscal balance, grew to around £26.5 billion, or 11.7 per cent of GDP, more than double the UK deficit of 5.1 per cent of GDP. This is an increase of £5.1 billion on the previous year.
Ian Murray, the Scottish Secretary, said the figures proved the SNP's desire for full fiscal autonomy - which would hand Holyrood full powers of taxation - would cause "turbo-charged austerity".
"These figures underline the collective economic strength of the United Kingdom and how Scotland benefits from the redistribution of wealth inside the UK," he said. "By sharing resources with each other across the UK, Scots benefit by £2,669 more per head in public spending than the UK average. It also means that Devolved Governments have the financial heft of the wider UK behind them when taking decisions.
"That means more money for schools, hospitals and policing, if the Scottish Parliament chooses to invest in those areas. People in Scotland will rightly expect to see better outcomes.
"These figures also underline that the Scottish Government's policy of full fiscal autonomy would mean turbo-charged austerity and economic chaos for Scotland. That's why the UK Government will stand up for the pooling and sharing resources across the UK as part of our Plan for Change - to grow the economy and put more money in working people's pockets."
Shona Robison, the SNP Finance Secretary, said decisions taken by ministers at Holyrood 'are helping support sustainable public finances'.
She said: 'For the fourth year in a row, devolved revenues have grown faster than devolved expenditure. Scotland's public finances are better than many other parts of the UK, with the third highest revenue per person in the UK, behind only London and the South East."
However, the veteran Nationalist added: "Being taken out of the EU, against the will of the people of Scotland, has also hit Scotland's revenues by £2.3 billion and the higher cost of UK Government debt adds £500 million to the deficit.
'Falling oil prices and a decrease in extraction present challenges going forward, but we are clear in our support for a just transition for Scotland's valued oil and gas sector, which recognises the maturity of the North Sea basin and is in line with our climate change commitments and energy security."
