Government spending figures reignite Scottish independence debate

On Wednesday the annual Government Expenditure and Revenue Scotland (GERS) report was published, which sets out the revenues raised in Scotland alongside public spending.

Its figures have long been a focus of debate when it comes to the finances of an independent Scotland, and this year is no different.

The 2022/23 report shows the public spending deficit in Scotland fell to £19.1 billion, largely driven by record North Sea oil and gas revenues.

Wellbeing Economy Secretary Neil Gray says this “snapshot” highlights the importance of Scotland becoming an independent country.

Speaking on BBC Good Morning Scotland, Mr Gray said: “It shows that 41 per cent of spending and 64 per cent of revenue remains reserved to the UK Government.

“Based on these figures, which are positive, it shows revenue figures are up faster than the rest of the UK, the deficit is down faster than the rest of the UK, and revenue per head of population is higher than the rest of the UK.

“So we are going in the right direction and doing everything we can to build a wellbeing economy that is fair, green and growing.

“But we don’t have the full powers to do that, as is demonstrated by the publication of GERS.”

He said Scotland has the economic resources to go it alone and move away from “Westminster’s broken economic model”.

Mr Gray said the majority of advanced nations, including the UK, run at a deficit, and neighbouring European countries like Norway, Finland, Sweden and The Netherlands all enjoy better economic growth and reduced levels of poverty, even though they have fewer natural resources than Scotland.

He added: “If you compare Scotland’s economic performance in the UK to our neighbours in Europe, they perform better - we need to ask, ‘why not Scotland?’

“Part of the reason is we are tied to a failing economic model in the UK which we want to move away from.

“We would rather have our own borrowing powers than have the likes of Liz Truss and Kwasi Kwarteng, who crashed the economy with their mini budget and caused inflation and interest rates to spiral.

“I would rather we had control of that.”

However, opposition politicians argue GERS shows the need for Scotland to remain a part of the UK.

Scottish Conservative leader Douglas Ross said the figures show staying in the UK is worth more than £1,500 a year for every person in Scotland.

Craig Hoy MSP, the party’s chairman, said: “The figures show every year people in Scotland are benefiting from higher spending of £1,521 for every man, woman and child.

“That’s how broad the shoulders of the UK Treasury are, allowing us to support more people across Scotland and have one of the most generous cost-of-living support packages in the world.

“I welcome Prime Minister Rishi Sunak’s real push to bring inflation down, which will allow us to pay down our debts and keep tax manageable, which is why it is worrying the Scottish Government is setting out higher tax bases.

“Under the SNP’s Scottish tax system we are diverging from the rest of the UK which over time will impact Scotland’s ability to raise tax from middle income earners.

“What’s clear here is the SNP and their extremist Green partners don’t understand the markets or the Scottish tax system and are making a mess of Scottish public finances, including their prospectus for independence, which Scotland does not need right now.”

Scottish Labour have taken the opportunity GERS presents to argue they should win the next general election and subsequently take charge of the UK’s economy.

Michael Marra MSP, the party’s finance spokesman, said: “Frankly the mismanagement of the UK economy by the Tory government over the last decade has seen debt soar to unprecedented levels.

“We need to make sure the economy is growing better to make sure it is one of the highest growing countries in the G7, and the sooner we make that change, the better.

“There are hundreds of thousands of people across Scotland who support independence on a principled basis, but the leadership of that movement is not serving them well and is refusing to be honest about the costs and impact on public services in Scotland.

“In order to negotiate independence, it could take Scottish Government officials up to eight years.

“There is no plan for the immediate future of this country to put money back into people’s pockets, which is exactly what a Labour government under Keir Starmer would do.”

He added there is not enough business innovation in Scotland, despite the country’s “extraordinary strengths” in areas such as education and industry.

He also conceded UK Labour would not be able to set out a detailed economic plan until they see what fiscal situation they are left with if they do win the next general election.