Scottish Secretary Alister Jack responds to GERS 2020-21 figures.
Stats reveal unprecedented level of support from UK Government as Scotland tackles pandemic.
Commenting on the Scottish Government’s GERS figures, Scottish Secretary Alister Jack said:
Total public spending for the benefit of Scotland increased from £81.9bn in 2019-20, to £99.1bn in 2020-21.
Increased spending on the pandemic amounted to £17.2 billion – equivalent to more than £3,100 per person in Scotland.
Scotland’s notional deficit rose from £15.8 billion in 2019-20 to £36.3 billion in 2020-21. This is more than Scotland’s entire health, education, transport, housing and culture budgets for the year, which was cumulative £35.8 billion in 2020-21.
As a percentage of Scotland’s GDP the notional deficit increased from -8.8% in 2019-20 to -22.4% in 2020-21. For comparison, the UK’s deficit rose from -2.6% of GDP to -14.2% over the same period. New members of the EU are required to have a deficit less than 3% of GDP.
Public spending per person was £1,828 higher in Scotland than the UK average. This was an increase from £1,754 the previous year.
Tax revenues in Scotland were £382 per person lower than the UK average, compared with £290 lower the previous year.
The ‘Union dividend’ (reflecting Scotland’s lower tax revenues and higher public spending) was £2,210 per person compared with £2,043 the previous year.
North Sea revenues fell from £643m in 2019/20 to £414m in the last financial year.