Scotland’s Finance Secretary has insisted the country’s finances are “sustainable” as figures showed spending levels were more than £26 billion higher than the amount raised in revenues.
The latest Government Expenditure and Revenue Scotland (Gers) figures reported “overall public finances in Scotland weakening, as expenditure grew faster than revenue”.
For 2024-25, Scotland has a net fiscal deficit of minus £26.2 billion – an increase of £5.1 billion from the previous year – with this the representing minus 11.6% of the country’s GDP.
The UK deficit for 2024-25 was minus 5.1% of GDP, less than half the rate of Scotland.
The Scottish Government report said the “deterioration” between this year and last was in part linked to a fall in North Sea revenue, but it added: “The difference is primarily explained by movements in non-North Sea revenue and spending, with Scottish revenue growing more slowly and Scottish expenditure growing more quickly than the UK.”
Revenue in Scotland grew by 1.5% in 2024-25 to £91.4 billion.
Spending increased to £117.6 billion in 2024-25, up from £111.4 billion in 2023-24.
“As a share of GDP, public spending remained at historically high levels in 2024,” the report noted.
Scottish Secretary Ian Murray said the figures show Scots benefit from higher public spending than the UK average – with this £2,669 more per person north of the border.
He said this “means more money for schools, hospitals and policing, if the Scottish Parliament chooses to invest in those areas” – although he also claimed “people in Scotland will rightly expect to see better outcomes” for these higher spending levels.
Mr Murray said: “These figures underline the collective economic strength of the United Kingdom and how Scotland benefits from the redistribution of wealth inside the UK.
“By sharing resources with each other across the UK, Scots benefit by £2,669 more per head in public spending than the UK average.
“It also means that devolved governments have the financial heft of the wider UK behind them when taking decisions.”
Scottish Finance Secretary Shona Robison said decisions taken by ministers at Holyrood “are helping support sustainable public finances”.
She said: “For the fourth year in a row, devolved revenues have grown faster than devolved expenditure.
“Scotland’s public finances are better than many other parts of the UK, with the third highest revenue per person in the UK, behind only London and the South East.”
She also stressed the Gers statistics reflect the current constitutional arrangements, with Scotland part of the UK and “not an independent Scotland with its own policy, decisions on defence spending and the economy”.
Arguing the figures highlight the “limit” of devolved powers, Ms Robison said while the Scottish Government is responsible for more than 60% of public expenditure north of the border, it only controls “around 30% of revenue”.
The Finance Secretary told journalists: “As an independent Scotland we would have the powers to make different choices, different budgetary results, to build a stronger economy and enable Scotland to be a fairer, wealthier and greener country.”
She pointed to Ireland, saying GDP there had grown 12.5% over the last year, with a budget surplus of 24 billion euros (£20.7 billion) in 2024.
Ms Robison hailed that as an example of “what a small independent country, one of our nearest neighbours, is able to do with the full powers of independence”.
She said: “What we want, through the powers of independence, is to be able to make our own decisions.
“If you look at Ireland and what they have been able to do with the powers they have, it’s like night and day compared to the economic conditions of the UK economy or the Scottish economy.
“Independence is the direction we want to take because we believe it will unleash the potential, from day one, to be able to emulate some of the economic performance of many of our neighbours, whether it is Ireland, or some of our Scandinavian neighbours.”