SCOTLAND’S public spending deficit is falling faster than that of the UK, according to statistics announced today by the country's chief statistician.
The 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 to reach £61.3 bn – the fastest growth since 2010-11.
The overall notional deficit also 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.
Public spending in Scotland was nearly was also £1661 per head higher than that of the UK average, the report revealed.
The Tories said the figures reveal a £12.6bn “black hole” in the budget if Scotland was to become independent.
However, the £12.6bn difference between spending and the tax take was lower than the £13.8bn deficit estimated for the previous year.
READ MORE: GERS report – everything you need to know about today's figures
Commenting on the report 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."
However, Mackay warned Brexit, especially a No-Deal withdrawal, poses a substantial risk to the country’s economy.
He said: “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.”
READ MORE: ‘Rattled’ pro-UK parties attack Sturgeon for missing GERS figures
Scottish Secretary Alister Jack claimed the figures show there would be a £12.6bn “black hole” if Scotland were to become independent.
He said: “Today’s GERS figures show clearly how Scotland benefits from being part of a strong UK with every man, woman and child in Scotland receiving a ‘Union dividend’ of nearly £2000 a year.
“These Scottish Government figures also show there would be a £12.6 billion black hole at the centre of an independent Scotland’s finances. Real questions need to be asked about the First Minister’s stewardship of the country’s economy.
“With Scotland’s deficit now more than six-times greater than the UK average, the Scottish Government needs to take action.”
“Scotland remains the highest taxed part of the UK. This is harming our economy and should be a huge concern to us all.
“The UK Government is investing in Scotland to deliver jobs, opportunities and sustainable growth, including £1.4 billion for city and growth deals. We are working hard to support businesses and bring further opportunities as we leave the EU on 31 October.”
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