Scottish GDP is currently trailing behind the rest of the UK, according to the latest figures released by the Scottish Government today.
The statistics show Scotland’s Gross Domestic Product (GDP) grew by 0.3 percent in real terms during the third quarter of 2018.
That rate compares to the 0.6 percent growth rate for the UK as a whole during the third quarter.
This follows last week’s forecast by the Scottish Fiscal Commission that Scotland’s growth will continue to lag behind the UK economy as a whole in the next four years, from 2019 up to 2013.
This follows the revelation that the SNP’s income tax receipts are forecast to drop nearly £500 million next year alone.
The Scottish Conservatives have said that the widening tax gap between Scotland and the rest of the UK will further harm the Scottish economy.
Dean Lockhart, Scottish Conservative shadow economy secretary said;
“It’s quite clear that Scotland’s economy is trailing the rest of the UK, despite the fact that we are facing the same challenges at present.
“The SNP is far more concerned with raising taxes than energising the Scottish economy.
“It is no coincidence that the UK economy is performing better than the Scottish economy, given the widening tax gap.
“The shocking drop in forecast income tax revenue of £500 million and predictions for another four years of economic underperformance show that Scotland’s economy is facing an SNP downward spiral.
“This is yet another reason that the SNP must focus on a competitive tax regime for Scotland.”
Notes to editors:
Scotland's GDP 2018, Quarter 3, First Estimate can be found here - https://www2.gov.scot/Topics/Statistics/Browse/Economy/PubGDP/GDP2018Q3
The SNP’s income tax receipts are forecast to drop nearly £500 million in a year. This year’s budget shows that total revenue from income tax in Scotland is expected to drop between 2018-19 and 2019-20, from £12.181 billion to £11.684 billion. Income tax receipts next year will also be nearly a billion pounds less than the SNP expected this time last year: last year’s Draft Budget estimated that Scottish Income tax revenues would be £12.582 billion in 2019-20 (Scottish Government, p.8, Scottish Budget 2019-20, link).
Scotland’s growth is forecast to be slower than the UK as a whole from 2019 – up to 2023. Over the period 2018 to 2023, the SNP’s economy will lag behind the rest of the UK, costing our businesses and public services billions of pounds in lost growth (Scottish Fiscal Commission, p.6, Scotland’s Economic and Fiscal Forecasts, 12 December 2018, link).