GERS figures spark fiscal automony row

The latest public finance figures for Scotland show an improvement but still lag behind the UK as a whole.

Scotland’s tax take for the last financial year was £400 per head higher than the rest of the UK, according to the GERS statistics on public sector revenue and expenditure published today.

However at the same time expenditure is also higher, spending £1,200 more per head of the population.

With the country £12.4bn in the red, measuring the deficit as a share of economic output Scotland performed substantially worse than the UK average.

“Running a fiscal deficit is not uncommon. The UK has been in deficit in 43 out of the past 50 years and its deficit currently stands at £97 billion. The vast majority of developed countries also run a deficit,” said First Minister Nicola Sturgeon. The deficit was coming down despite lower oil revenues, she said.

UK Scottish Secretary Alistair Carmichael said the report “put the case for remaining in the UK beyond all doubt” because of the instability of the oil price.

The Scottish Trades Union Congress (STUC) said the figures demonstrate a “sobering reminder” of the risks of fiscal autonomy for Scotland, should the Barnett funding formula be scrapped.

General Secretary Grahame Smith said: “The STUC has consistently argued that whilst Scotland’s funding settlement with the UK is entirely fair in the context of its historic and anticipated fiscal contribution, there are real risks associated with the volatile nature of oil revenues.”

Scottish labour leader Jim Murphy said full fiscal autonomy would lead to cuts “never before seen in Scotland”.

"After years of paying into the UK kitty, with plummeting oil revenues we need the security of the Barnett formula now more than ever. It’s a cruel irony that after years of claiming that they alone stand up for Scotland, the SNP’s own figures have exposed the fact their plan for full fiscal autonomy would impose austerity-max on our country,” he said.

Sturgeon denied the figures were reflective of how Scotland would perform with independence. “Such analysis tells us very little about the choices and opportunities with greater autonomy. It shows Scotland under the status quo, without full access to the levers to grow our economy and use the proceeds to invest in public services,” she said.