North Sea oil revenues drop pushes Scottish finances deeper into the red, GERS report finds
dailyrecord.co.ukA sharp drop in North Sea oil and gas revenues last year pushed Scotland's finances deeper into the red.The annual Government Expenditure and Revenue (GERS) report - which is compiled by Scottish Government experts - found the country continues to spend more on public services than it raises in revenues.Scotland had a notional deficit of 10.4 per cent of GDP (£22.7 billion) last year, up from £19 billion.
The UK has a deficit of 4.5 per cent in comparison.The increased spending gap is largely caused by a decline of £4 billion in revenues generated by the North Sea energy sector.Total public spending in Scotland increased to £111.2 billion last year, which includes a rise in cash for the NHS.Government expenditure per person in Scotland is also £2,417 higher than the rest of the UK, with £20,418 spent on average for every single person north of the border.Shona Robison, the Finance Secretary, said the deficit was "not a reflection on the finances or policies of the Scottish Government".
She added: "It is important to emphasise these figures reflect Scotland's status as part of the UK."The UK economic model is driven by London and the South East of England.
The UK Government retains control of 40 per cent of expenditure and over 70 per cent of revenues in Scotland. "A significant portion of the spending allocated to Scotland relates to servicing UK Government debt, which is paid at a higher rate than our European neighbours."As an independent nation, we would have the powers to make different choices.
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