GERS don’t tell the whole story

There has been a lot of talk this week about the GERS Report and what it does and doesn’t tell us about the Scottish economy.

But what is the GERS Report?

Well, first of all, it has nothing whatsoever to do with a certain Glasgowbased football team.

GERS stand for ‘Government Expenditure and Revenue Scotland’and it estimates how much money is spent for Scotland’s benefit by the Scottish Government and the public sector – and it also includes how much is spent‘on Scotland’s behalf’ by the UK Government, including things like Scotland’s share of the cost of Trident and HS2, the high speed rail link being built between Birmingham and London.

What it gives us is a snapshot of Scotland’s public finances, in this moment in time, and in our current position as part of the UK. But it doesn’t provide us with the full picture – and it doesn’t tell us about the finances of an independent Scotland.

As part of the UK, Scotland’s economy can be assigned a notional deficit and the good news is that, on the back of rising revenues, that notional deficit reduced by £1.1 billion, falling faster than the deficit of the UK as a whole.

It also highlights the fact that health and education spending per person is higher in Scotland than in the UK as a whole.

The Scottish Government is investing £109 more per head than the UK Government on health, and £215 more on education and training. This shows that the SNP is giving taxpayers the best deal of any part of the UK.

What is also clear is that Brexit, particularly a‘no deal’Brexit, would cause disproportionate damage to Scotland’s economy.

The good progress made by the Scottish Government is at risk from the UK Government’s reckless approach to Brexit, which poses a severe threat to jobs, investment and living standards.

‘No deal’could reduce revenues in Scotland by around £2.5 billion a year, demonstrating the growing need for Scotland to become an independent country in full control of its own finances.

Scotland is rich in human talent and natural resources. However, as part of the UK, Scotland doesn’t have the economic levers to maximise growth in our economy, and to invest according to our own priorities.

GERS figures include the UK Government’s spending on Scotland’s behalf, such as Trident and HS2 – but the government of an independent Scotland would have completely different priorities.

Scotland’s ability to grow our population, and our tax base, is also being held back by the UK Government’s damaging obsession with limiting migration.

In an independent Scotland, the Scottish Government will gain the economic powers to deliver policies that are tailored to Scotland’s own circumstances, and that would enable us to grow the economy while building a fairer society.

Doesn’t that sound a lot better than a country where people can’t retire until they are 75?