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21/08/19 09:30

Scotland’s revenues grow by £3 billion

Deficit continues to fall. 

Scotland’s notional deficit is falling faster than the UK’s, with onshore revenues increasing by 5.1% to reach £61.3 billion in 2018-19 as a result of continued economic growth.

According to the Government Expenditure and Revenue Scotland (GERS) figures published today, Scotland benefitted from a £3 billion increase in onshore revenues in the last year – the fastest growth since 2010-11 as the overall notional deficit fell by £1.1 billion to 7.0% of GDP, down from 8%, in 2018-19.

The reduction in the notional deficit is the result of revenues growing at a faster rate than expenditure.

Commenting on the latest figures during a visit to advanced manufacturing company Armadilla Ltd in Bonnyrigg, Finance Secretary Derek Mackay 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.

“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

“A ’no deal’ Brexit could reduce revenues in Scotland by around £2.5 billion a year, holding Scotland back and demonstrating why people in Scotland increasingly recognise the importance of making our own decisions.

“These figures reflect Scotland’s position as part of the UK. The Scottish Government believes we could unlock our full potential with independence, allowing us to take the best decisions for Scotland.

“As we have always said, Scotland has a strong, and growing, economy and our future will be far brighter as an independent member of the EU.”

Background

The full statistical publication is available at http://www.gov.scot/gers