Scottish tax revenue £400 per head higher than UK

11 Mar 2015 11:24 AM

Government Expenditure and Revenue Scotland 2013-14 figures.

Scotland’s tax take for the last financial year was £400 per head higher than the rest of the UK, according to statistics published today on public sector revenue and expenditure.

Tax revenues in Scotland have been higher per person than in the rest of the UK in each of the last 34 years, with the additional revenue over the last five years totalling £4,100 per person. 

The statistics also show that, over the past year, Scotland’s fiscal position improved from a deficit of 9.7 per cent to a deficit of 8.1 per cent of GDP, despite record capital investment in the North Sea lowering oil revenues. 

First Minister Nicola Sturgeon described the Government Expenditure and Revenue Scotland (GERS) figures for 2013-14 as “testament to the inherent strengths of the Scottish economy” but called for full control of job-creating powers.

The figures also show that even with a fall in oil revenues as a result of record levels of capital investment in the North Sea, total public sector revenue is estimated at £54 billion, or 8.6 per cent of UK public sector revenue – this represents £10,100 per person.

The GERS report also contrasts revenues in Scotland with other parts of the UK for the first time, showing that Scotland contributes the fourth highest revenues of the 12 countries and regions of the UK, after London, the south East and East of England.

The First Minister said: 

“On average, Scotland paid £400 more in tax per person to the UK Treasury than elsewhere in the UK last year. That is the 34th year in which we have contributed more than the rest of the UK and is a testament to the inherent strengths of the Scottish economy. 

“Scotland makes higher revenue contributions than the UK as a whole, we have higher employment, lower unemployment than the other nations of the UK and our economy is growing at a faster rate than the UK as a whole.

“Including an illustrative geographic share of North Sea revenue, Scotland’s current budget balance deficit last year was 6.4 per cent of GDP and our net fiscal balance improved over the year despite record capital investment in the North Sea lowering oil revenues.

“Running a fiscal deficit is not uncommon. The UK has been in deficit in 43 out of the past 50 years and its deficit currently stands at £97 billion. The vast majority of developed countries also run a deficit. 

“Under the status quo, Scotland’s fiscal position has fluctuated year on year and over the last ten years our current budget balance – the extent to which current taxpayers are funding current services – has been, on average, stronger than the UK at -3.4 per cent of GDP compared to -3.5 per cent of GDP. 

“However, such analysis tells us very little about the choices and opportunities with greater autonomy. It shows Scotland under the status quo, without full access to the levers to grow our economy and use the proceeds to invest in public services.

“We have the capacity and the resources to grow our economy, address inequalities, grow small businesses and put more people back to work. But to do that we need more economic powers and the ability to protect Scotland against the anticipated £14.5 billion in cuts that Westminster plans over the course of the next parliament.

“Going forward, these figures illustrate once again the need for the Scottish Government to have full control of job-creating powers. If we held the levers of our economy in our own hands and were able to invest according to our own priorities, we could make a very significant positive contribution to growing our economy.”

Notes To Editors

Government Expenditure and Revenue Scotland 2013-14 is available on the Scottish Government website – http://gov.scot/gers