Government Expenditure and Revenue Scotland (GERS) figures published today, show that Scotland benefitted from a £3 billion increase in onshore revenues in the last year – the fastest growth since 2010-11.
This revenue increase was supported by income tax and VAT growth of over 7%. Income tax grew by £850 million, and VAT by £750 million.
Meanwhile, the overall notional deficit fell by £1.1 billion to 7.0% of GDP, down from 8%, in 2018-19.
Scotland’s notional deficit is falling faster than the UK’s, with onshore revenues increasing by 5.1% to reach £62.7 billion in 2018-19 as a result of continued economic growth. This reduction in the notional deficit is the result of revenues growing at a faster rate than expenditure.
The GERS report also shows that the SNP Government invested £109 more per head last year than the UK Government on health, and £215 more on education and training.
Commenting on the latest figures, Finance Secretary Derek Mackay MSP said:
"With record tax revenues, strong economic growth and near record low unemployment, Scotland’s economy and public finances are strong. Today’s figures show overall revenue in Scotland reached £62.7 billion – exceeding £60 billion for the first time – reflecting the strength of our economy.
“Our notional deficit has fallen while public spending has increased, thanks to our efforts to grow the onshore economy and the strong performance of taxes in Scotland. The Scottish Government’s choices on taxation are helping to create a more progressive tax system.
“However, this strong performance from Scotland’s economy is at risk as a result of the UK Government’s EU exit plans, and in particular a 'no deal' Brexit, which poses a severe threat to jobs, investment and living standards
“This demonstrates why people in Scotland increasingly recognise the importance of making our own decisions.”
Kenneth Gibson MSP added:
“I am delighted that Scotland’s revenue in 2018-19, Scotland’s revenue was the highest of the 12 UK nations and regions of the UK excluding London, East and South East England, demonstrating the success of this SNP Government’s fiscal policies.
“However, the GERS report is not a full picture of Scotland’s public finances, because as well as estimating how much money is spent for Scotland’s benefit by the SNP Government and the public sector, it also includes how much is spent on ‘Scotland’s behalf’ by the UK government, including Scotland’s share of the cost of trident and HS2, the new high-speed railway linking Birmingham to London.
“I firmly believe that by becoming independent, we will optimise Scotland’s economic potential by utilising all the economic levers available to grow our economy and invest according to our own priorities.”
To read the GERS report in full, please visit:
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