The Scotland Office will today (Monday 25 January) published a Background Paper on Expenditure and Revenue in Scotland. The paper examines the revenue generated in Scotland and the spending of both the UK and Scottish governments in Scotland. The analysis is based on figures contained in the Scottish Government's GERs report.
It shows that since the creation of the Scottish Parliament in 1999, Scotland has benefitted from a 'devolution dividend' of more than £75bn. This is the cumulative sum of public money spent in Scotland by both the UK and Scottish Governments over and above the tax collected in Scotland.
.JPG)
The aggregate of Government receipts in Scotland since devolution is £324,157m while the aggregate Government expenditure totals £399,935m. The paper makes clear the positive impact of Scotland's two governments at Westminster and Holyrood and the benefits of sharing both resources and risk across the United Kingdom.
Key findings in the paper include:
- Since 1980, even with all the UK's oil and gas tax receipts, Scotland would have accumulated a £23.5bn deficit.
- Since 1999, when devolution started, spending by the UK and Scottish governments in Scotland has exceeded tax revenue collected in Scotland by £75.8bn.
- In the last year that figures are available for, 2007-08, the combined spending by the UK and Scottish governments in Scotland amounts to 145 per cent of the tax raised in Scotland.
- A fiscally autonomous Scotland would have to raise £2,700 from every household in Scotland if it wanted to cover UK Government spending on welfare from Scottish tax receipts.
- Welfare spending, at £12.6bn, is the single largest item of expenditure in Scotland by either the UK or Scottish government.
- UK Government spending accounts for approximately 40% of total public spending in Scotland.
Jim said:
"You don't need to be an economist to know that Scotland benefits from being part of Britain or that Britain is better because of Scotland. Occasionally it helps however to look at the economics of devolution. Scotland has two governments spending billions of pounds of public money and there is a clear and quantifiable 'devolution dividend'.
"Scotland gets the best of both worlds from devolution. Edinburgh takes decisions on devolved spending priorities while the UK Government continues to invest in priorities like welfare and defence.
"The UK Government provides help for many of Scotland's vulnerable when they need it most.
"UK defence spending supports jobs in Scottish shipyards, jobs at RAF bases and jobs at Faslane. Scotland plays a vital part in UK national security and our brave armed forces in Afghanistan are fighting the Taleban alongside their colleagues from the rest of Britain.
"Devolution works for Scotland and trying to undermine it is unpatriotic."