Scottish revenue increases by £1.7bn

Revenue generated for Scotland’s public services increased by £1.7 billion last year to £88.5 billion, driven by a strong labour market, progressive taxation and renewable energy, official statistics show.

Total spending for Scotland increased to £111.2 billion, with additional funding for the NHS and Scottish Child Payment reflecting Scottish Government priorities of investing in public services and eradicating child poverty.

The 2023-24 Government Expenditure & Revenue Scotland statistics also show that Scotland’s onshore revenue grew faster than the rest of the UK’s. This growth was partially offset by a decline of approximately £4 billion in North Sea revenue.

Cabinet Secretary for Finance and Local Government Shona Robison said:

“I welcome the fact that Scotland’s revenues grew last year, with those generated onshore growing faster than in the rest of the UK, thanks in part to our progressive approach to tax and the revenue from renewable energy.

“As the report makes clear, the notional deficit is not a reflection on the finances or policies of the Scottish Government – it is a reflection of UK Government choices.

“It is also important to emphasise that these figures reflect Scotland status as part of the UK. As figures from the Office for National Statistics show, the UK economic model is driven by London and the South East of England. The UK Government retains control of 40% of expenditure and over 70% of revenues in Scotland. Indeed, a significant portion of the spending allocated to Scotland relates to servicing UK Government debt, which is paid at a higher rate than our European neighbours.

“As an independent nation, we would have the powers to make different choices. As it is, we are using all the powers we do have to deliver our priorities of growing the economy, investing in net zero, eradicating child poverty and delivering strong public services.”

To mark the publication of the statistics, Ms Robison visited Edinburgh Napier University’s School of Computing, Engineering & the Built Environment. She added: “I was particularly pleased to meet the staff and students at Napier University, whose work to develop cutting-edge smart systems and connected devices is crucial for the future of industries such as manufacturing and healthcare, which will in turn help drive economic growth.”

Background

Government Expenditure & Revenue Scotland statistics release 2023-24

Government Expenditure & Revenue Scotland statistics 2023-24

The aim of GERS is to enhance public understanding of fiscal issues in Scotland. The primary objective is to estimate a set of public sector accounts for Scotland through detailed analysis of official UK and Scottish Government finance statistics. The report is designed to allow users to understand and analyse Scotland’s fiscal position under different scenarios within the current constitutional framework.

The ONS has published Country and Regional Public Sector Finances for the UK, with the latest year relating to 2022-23. This shows that only London and the South East have a positive fiscal position, with Scotland’s fiscal position better than most other parts of the UK.

Country and regional public sector finances, UK - Office for National Statistics (ons.gov.uk)

Regional economic activity by gross domestic product, UK - Office for National Statistics (ons.gov.uk)

Internationally comparable figures from the UN’s A World of Debt Dashboard show that the UK spent around 2.5% of GDP on general government debt interest payments in 2023, higher than Portugal (2.0%), Spain (1.9%), France (1.7%), and Belgium (1.5%). Like the UK, all of these countries have general government debt of around 100%.

Edinburgh Napier University is the #1 modern university in Scotland (Times Higher Education World University Rankings 2024), the #1 university in Edinburgh for student satisfaction (NSS 2020, 2021, 2022, 2023 & 2024), a top 10 UK modern university (Times/Sunday Times Good University Guide 2023), and the top Scottish modern university for research power and impact (Research Excellence Framework 2021). www.napier.ac.uk