The latest annual Government Expenditure & Revenue Scotland (GERS) figures show that the ‘Union dividend’ has risen sharply and is now worth almost £2,400 for every person living in Scotland.
The figure, which combines the net value of Scotland’s spending and revenue compared with the UK as a whole, stood at £2,357 in the 2023/24 GERS report – an increase of two thirds on last year (£942).
Scotland’s net fiscal balance stands at £22.7 billion, equivalent to 10.4 per cent of its GDP. That is more than twice as high as the UK’s net deficit, which stands at 4.5 per cent of GDP.
The report also highlights the continuing importance of the oil and gas sector to Scotland’s finances, despite falling North Sea revenues. When oil and gas revenues are excluded, Scotland’s deficit rises to £26.6 billion (13.2 per cent of GDP).
Shadow finance secretary Liz Smith insists the GERS figures contained some “inconvenient home truths” for the SNP. She said they once again demonstrated the benefits Scotland derives from being part of a strong United Kingdom and that the nationalist government have “squandered” a record funding settlement.
The Scottish Conservative MSP added that the importance of the North Sea to Scotland’s fiscal standing underlined the “sheer folly” of Labour and the SNP “abandoning” the oil and gas sector.
Scottish Conservative shadow finance and local government secretary Liz Smith MSP, said: “These official figures highlight some startling and inconvenient home truths for the SNP.
“Once again, their own government’s stats underline the huge – and growing – Union dividend that Scotland derives from being part of a strong United Kingdom.
“Every single person in the country is £2,400 better off because we are part of the UK.
“And, yet, despite record block grants, the SNP have squandered that funding settlement. Their financial mismanagement and waste has left Scots with higher taxes than anywhere else in the UK and brutal cuts to essential services.
“The GERS figures also underline the importance of the oil and gas sector to Scotland’s fiscal security, and the sheer folly of the Labour Government in abandoning North East communities by turning off the taps in the North Sea.
“It beggars belief that Keir Starmer’s reckless policy is backed by the SNP, Liberal Democrats and the Greens. Only the Scottish Conservatives are standing up for this vital sector of the Scottish economy and the tens of thousands of skilled workers it employs.”
Notes to editor
The Union is worth nearly £2,400 to every man, woman and child in Scotland. When including North Sea income, revenue per person in Scotland was £60 higher compared to the whole of the UK, whilst expenditure per person was £2,417 higher per person in Scotland compared to the whole of the UK. This means the so-called ‘Union dividend’ is worth £2,357, which takes the public expenditure figures and adds or takes away revenue per person figures, depending on if revenue per person is higher or lower than the UK average. (Government Expenditure and Revenue Scotland, 14 August 2024, link).
The Union dividend is two thirds larger than the year before. Using the revenue per person and expenditure per person figures from the year before, the Union dividend was £1,415 in 2022-23, broken down by £2,136 in higher expenditure per person and subtracting the £721 in higher taxation per person. So the Union dividend for 2023-24 was £942 higher compared to the year previously, or a 66.6% increase. (Government Expenditure and Revenue Scotland, 14 August 2024, link).
Scotland’s net fiscal balance stood at £22.6 billion – a £4.7 billion increase on the year before. Scotland’s net fiscal balance stood at £22.7 billion or 10.4% of GDP in 2023-24, a rise on the £18 billion seen the year before. This is substantially larger than the UK’s deficit of 4.5% in 2022-23. (Government Expenditure and Revenue Scotland, 14 August 2024, link).