THE Scottish Government took in £1.7 billion more in revenue last year than before, according to new statistics which hailed growth fuelled by a strong labour market.
Officials said the extra funding had helped to pay for the health and social care sector and the Scottish Child Payment.
Declining North Sea oil meant Scotland’s deficit had risen to stand at 10.4% of gross domestic product (GDP), which is a measure of the national economy.
The deficit stood at £22.7bn last year, according to Government Expenditure and Revenue Scotland (GERS) statistics published on Wednesday morning.
That is up from a deficit of 9% of GDP at the last count. A “significant” amount of this is spent repaying UK Government debt, the Scottish Government said.
GERS figures set out the difference between the Scottish Government’s total revenue and total expenditure.
Falling income from the North Sea was offset by growth in other state revenues. Non-North Sea revenues were up by £5.7bn, an increase of 7.2%, with North Sea revenues down by £3.9bn to £4bn.
The Scottish Government attributed this fall to declining production levels and energy prices coming down from historic peaks.
Overall, Scottish public sector revenue was £88.5bn, or 8.1% of total UK revenue, with £4bn of this coming from the North Sea.
Total spending was up by 6% from the last count to £111.2bn.
Speaking at a press conference for the announcement of the GERS figures, Finance Secretary Shona Robison (above) said onshore revenues were “growing faster than in the rest of the UK”, which she put down to Scotland’s “progressive approach to tax and the revenue from renewable energy”.
She added: “As the report makes clear, the notional deficit is not a reflection on the finances or policies of the Scottish Government – it is a reflection of UK Government choices.
“It is also important to emphasise that these figures reflect Scotland status as part of the UK.
“As figures from the Office for National Statistics show, the UK economic model is driven by London and the South East of England. The UK Government retains control of 40% of expenditure and over 70% of revenues in Scotland.
“Indeed, 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. As it is, we are using all the powers we do have to deliver our priorities of growing the economy, investing in net zero, eradicating child poverty and delivering strong public services.”
Unionists argue it indicates the deficit level, which is higher than the UK-wide level, an independent Scotland could expect. Independence supporters say it does not reflect how Scotland could make different choices in taxation and public spending after independence.
The UK Government seized on figures showing that average spending was £2417 more per head in Scotland than in the rest of the UK.
Scotland Office minister Kirsty McNeill said: “These figures underline the collective economic strength of the United Kingdom.
“By pooling and sharing resources across the UK, Scots benefit by £2417 more per head in public spending than the UK average. That means more money for schools and hospitals, if the Scottish Parliament chooses to invest in those areas.”
Scottish Labour argued higher spending north of the Border should result in “better public services”.
The party’s finance spokesperson Michael Marra said: “On attainment in our schools and waiting times in our hospitals people deserve so much better. We need to drive waiting times down and attainment up.”
