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By G.A.Ponsonby
The most up to date figures on Scotland’s fiscal situation show that Scotland’s finances are in much better shape than the rest of the UK.
The publication of the annual Government Expenditure and Revenue Report (GERS), shows that had Scotland been independent last year then every man, woman and child would have been over £500 better off.
The report, compiled by independent Government analysts and recognised by both Edinburgh and Westminster as the best indicator of Scotland’s financial situation, showed that Scotland contributed proportionally more to the UK Treasury than the rest of the UK.
According to figures in the report, Scotland generated 9.6 per cent of UK revenues with just 8.4 per cent of the population. However, despite contributing 9.6 per cent to the UK Treasury, Scotland received only 9.3 per cent in return.
Including our geographical share of North Sea revenues, Scotland’s estimated current budget balance in 2010-11 was a deficit of £6.4 billion, or 4.4 per cent of GDP – stronger than the UK-wide deficit of £97.8 billion, or 6.6 per cent of GDP for the same year,
However the UK figure includes 100 per cent of North Sea revenues which would decrease with Scottish independence.
The overall net fiscal balance for Scotland – which includes long term infrastructure investment – showed Scotland was again in a stronger position than the UK: a deficit of 7.4 per cent of GDP, compared to 9.2 per cent for the UK as a whole.
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The report was warmly welcomed by Scottish Finance Secretary John Swinney who said it blew apart the myth that Scotland needed subsidies from south of the border.
The figures, said Mr Swinney, showed that Scotland had lost £8.6 billion since 2006/7 by being in the Union – which was over £1,600 for every man, woman and child in Scotland.
“This underlines the opportunities of independence and financial responsibility.” said the Finance Secretary, who added:
“Scotland’s oil and gas resources – a trillion pound asset base – are worth more than 10 times Scotland’s share of a UK debt built up by successive Westminster governments.
“And we know that North Sea revenues remain substantial, with more than half the value still to be extracted.
“…The independence referendum in Autumn 2014 will be an opportunity to ensure that the key economic decisions are taken in Scotland for Scotland, and that we can boost economic growth and invest the proceeds in protecting our public services.”
SNP MSP Kenneth Gibson – Convener of the Scottish Parliament’s Finance Committee – insisted that the benefits of independence were now unanswerable.
Citing a poll in December showing that two thirds of people would support independence if it were shown they would be just £500 better of Mr Gibson said:
“The case that Scotland would be better off independent is unanswerable. Not only is more raised in Scotland than is spent, but Scotland’s budget has been in a stronger position than the UK as a whole in each of the last six years – all the way through the tough financial times that we were told an independent Scotland would not survive.
“Recent polls have suggested that two thirds of Scots would be in favour of independence if it made them £500 a year better off – today’s figures show that they would have been £510 a year better off in 2010/11.
“We are also told again and again that an independent Scotland would be over-reliant on a volatile North Sea Oil resource. Yet today’s figures show that oil revenues are only 15% of our total tax take – compared to 29% in Norway, which seems to manage just fine as an independent country.”
“Continued attempts from anti-independence parties to try and scare voters into staying the UK are having precisely the opposite effect. As we move forward with the “Yes” campaign more and more people are realising that – despite consistent attempts from anti-independence parties to talk Scotland down – there is absolutely no doubt of Scotland’s sound financial footing.”
Opponents of independence responded to the report by claiming that volatility in the oil market made independence risky. Lib Dem Secretary of State for Scotland Michael Moore claimed that Scotland was better off within the UK.
Mr Moore said: “Scotland is an integral part of the UK and also benefits from the UK-wide spending on the wider economy – including the essential stabilisation of the banking system, deficit reduction, quantitative easing and other projects led by the UK government,” he said.
“There is little point in the Scottish government saying Scotland’s finances are stronger than the UK’s – that relies on a number of omissions and fails to take account of the interwoven nature of the UK’s spending.”
Labour MSP Ken Macintosh said that Scotland was better staying with the rest of the UK ‘sharing the risks and rewards’
He added: “This shows the huge economic benefits of Scotland working in partnership with the rest of the UK and explodes the myth that somehow Scotland’s finances are being diddled by the club we are part of.
“The report shows that, if the SNP get their way, Scotland would have to raise taxes, cut public services or borrow more at a higher rate.”
Last weekend Mr Macintosh’s leader, Johann Lamont had claimed that Scotland should stay in the Union in order to benefit from the sharing of wealth from the south east of England that she claimed was the wealthiest part of the UK.
Ms Lamont claimed that an independent Scotland would be unable to tackle the blight of poverty as effectively as it can within the Union.
How BBC Scotland’s Douglas Fraser reported the GERS figures: Download Embed Embed this video on your site
The full report can be read here: http://www.scotland.gov.uk/Resource/0038/00389321.pdf
The basic tax take is volatile.
It is SELF INTEREST which motivates the anti independence parties MP’s in Scotland, and not much else.
Tell you what I’ll do. I’ll pocket the 500 and then add to it the 145 by not paying the license fee for the BBC, then I’ll stick in another grand by getting the hell out of the corrupt and undemocratic EU. Then and only then might I be able to afford a holiday using my new Scots passport to replave the Great British one which I have allowed to expire. Next trip abraod will be with a Scots document in my pocket.
The Behaviour of Gordon Brewer on Newsnicht last night was appalling. Referring to the SNP spokesman as talking “rubbish.”
I have asked this simple question many times of unionistsin the past and still awaiting an answer.
If,as we are reminded, Scotland is a drain on the westminster economy, why all this panic to retain a loss making region of the u.k. Mayb they just love us even if we are too poor and stupid.
The BBC in Scotland has now become completely unaccountable, gone rogue if you will. Following hard on the heels of last night’s Newsnight when Brewer turned to Ken McIntosh to say that he (McIntosh) would say the SNP representative was ‘talking nonsense’, this morning’s GMS was an unleavened barrage of anti-SNP, anti-independence propaganda, from the Electoral Commission ‘warnings’, to Gary Robertson’s attempts to bully John McCormick into agreeing a referendum could be held before 2014, to defence ‘implications’ of independence, to delayed implementation of Cfe..
Let us be clear. Chris Patten is not going to address this situation. BBC Scotland are not going to change. The BBC in Scotland think they can win the No vote for the Union. People like us have to stop them. A demo outside Pacific Quay was mentioned above.. is this happening?
Did you hear Salmond at the end of FMQ answering K Gibsons question on Gers. Stating to the bellowing BritNAts that they better get used to theeconomics because theres going to be plenty more of it during the campaign.
I imagione the SNp have a huge compedndium on Scotlands finances and will release information after information on the lies that the people mof Scotland have been told over the decades on her wealth. BRING IT ON.
Old fashioned newspaper Brit-bashing from Robert McNeill in the Belfast Telegraph. belfasttelegraph.co.uk/…/…
Will Foulkes, Robertson, Rennie et al now start moaning about journalist-nats in addition to the cyber variety? If they don’t like message, they simply denigrate the messenger.
I’ve been through the report with a fine tooth-comb and can’t find any material evidence that this 25.7 billion ever gets back to us in a meaningful way.
Another O/T:
STUC backs SNP Referendum Terms (from the BBC of all places):
bbc.co.uk/…/…
O/T
The Scotsman has today really beaten all previous records for the number of anti-independence articles in a single issue.
It’s becoming laughable to even consider thinking of it as being a newspaper.
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Furthermore, Reid is a ‘consultant’ to G4S, the security company now taking over some of the running of some police force tasks in England under this controversial privatisation move.
If I remember correctly, this now puts 15% of the oil and gas revenue from the stolen sea under English jurisdiction so that’s another item to be included in the ‘fiddled’ figures.
How many more examples of Scottish contributions are hidden in this GERS report?
I have to say I was disgusted at the way an article was presented in the Metro yesterday regarding these figures. Apologies if anyone`s commented on it already as I don`t have time to go through the hundreds of comments already posted. The headline read ” WARNING AFTER FIGURES PUT SCOTLAND £10 BILLION IN THE RED” The only reason for such a negative headline is obviously politically motivated and designed to install fear. Even though the article has two short comments from John Swinney it is extremely negative. The same story in the sun was at least presented in a neutral way. The Metro is a free paper printed by ? The sun is apparently on side.