Scotland records notional deficit of £13.4bn, according to latest GERS figures

Scotland’s deficit between tax take and spending has narrowed in the last year, but remains much higher than the UK as a whole, the latest Scottish Government economic figures have shown.

The Government Expenditure and Revenue Scotland (GERS) figures published today show a notional deficit of 7.9 per cent of GDP, including North Sea oil revenue.

The UK deficit is 1.9 per cent of GDP.

However, both revenue and the economy grew in the last year so the figures represent an improvement in government finances in Scotland.

Onshore revenue has increased by £2bn and offshore revenue is up by £1bn, the figures show.

First Minister Nicola Sturgeon said: “Looking at the wider economic picture, these figures – along with recent Labour Market Stats, Labour Productivity and GDP figures – show that Scotland is on the right trajectory.

“It also demonstrates that our commitment to sustainable economic growth is the right one and we will continue to stimulate our economy in this way to reduce the deficit.”

The Scottish Conservatives said the fiscal deficit would be a “black hole” under independence.

Finance spokesman Murdo Fraser said: “Yet again, the union dividend has been made clear.

“By being part of the UK, Scotland received an extra £1,576 for every man, woman and child last year above the UK average.  For a family of four, that’s more than £6,000 in additional public spending.

“If Scotland was to be ripped out the UK, this spending would be slashed drastically, meaning schools, hospitals and infrastructure would be hit.”

Scottish Labour said the figures show an independent Scotland would continue a programme of austerity.

Leader Richard Leonard said: “The SNP’s plan to close Scotland’s deficit is a cuts commission – a vision for our country is one which protects the interests of big corporations and the privileged few instead of our vital public services.

“The dividing line in Scotland is now between Labour’s plan to invest and build an economy that works for the many, not the few, or further austerity with the SNP and the Tories.

Scottish Liberal Democrat Leader Willie Rennie described the figures as a “cruel blow” for nationalists.

“Whichever way you look at it, under nationalist plans all the good things we all want to do in Scotland would be under threat because of funding cuts,” he said.

“Investing in people through education and mental health would be harder under independence.”

GERS was set up by former First Minister Alex Salmond as an independent report to be the "authoritative voice" on Scotland's finances.