MIND THE £2BN GAP
SNP minister says growing deficit is inevitable result of pandemic.. but Tories say it’s a hammer blow for indy
PRO-UNION campaigners have claimed the UK is “more valuable than ever” to Scotland as the annual report into the nation’s finances showed its deficit has grown again.
The 2020 GERS report, which examines how much Scotland raises in taxes compared to how much it spends on public services, found a gap of £15.1billion in 2019-20, up from £13.1billion last year.
It found overall revenues, including North Sea oil receipts, increased to a record £65.9billion. Onshore revenues grew by £1.1billion to reach £65.2billion.
These rises came despite the coronavirus pandemic depressing public finances.
Corporation and VAT receipts fell and both the Scottish and UK governments increased spending to tackle the virus.
The publication, produced by independent statisticians on behalf of the Scottish Government, is always fiercely contested by both sides of the constitutional debate.
Finance Secretary Kate Forbes said the figures emphasised how Covid-19 had changed the fiscal landscape.
She added: “Countries across the world, including the UK, have increased borrowing to record levels and, as we emerge from the pandemic, high fiscal deficits will inevitably be one of the consequences.
“That is why the UK Government should prioritise economic stimulus over austerity. I will also continue to press for the Scottish Government to be granted additional financial powers to enable us to tailor a response that meets Scotland’s needs.”
Murdo Fraser, the Scottish Tories’ finance spokesman, said: “The GERS statistics show that the UK union is more valuable than ever.
“It’s worth nearly £2000 a year for every man, woman and child in Scotland – and this doesn’t take into account the blockbuster support from the UK Government throughout the pandemic.
“This is a hammer blow to the SNP and a massive setback for separation. Nicola Sturgeon would have to throw away Scotland’s entire NHS just to come close to balancing the budget in her separate state.”