UNION WORTH £2K A YEAR TO EVERY SCOT

Scotland would face a deficit of £12.6billion... highest percentage in EU Fears over huge tax hikes and spending cuts to fill funding black hole

As SNP figures reveal true benefits of staying in UK...

SCOTLAND’S place in the UK is worth more to families than ever before – leaving the SNP’s economic case for separation in tatters.

Public spending per head was £1,661 higher in Scotland than across the UK in 2018/19, with the gap growing substantially.

Scots also contribute £307 less per person towards government income.

this means that the overall ‘Union dividend’ is worth nearly £2,000 a year to every man, woman and child.

If the SNP succeeded with its crusade to break up Britain, an independent Scotland would start out with an eyewatering £12.6billion deficit, worth 7 per cent of its economic output – the largest proportion in the whole of europe.

It means that huge tax rises or cuts to public services would be required to fill the funding black hole, which is equivalent to the entire annual healthcare budget in

Scotland. The Government Expenditure and Revenue Scotland (GERS) document shows Scotland’s overall deficit – the difference between public spending and income – has fallen at a much slower rate than the UK’s and now accounts for more than half the UK public spending deficit.

Scottish Secretary Alister Jack said: ‘Today’s GERS figures show clearly how Scotland benefits from being part of a strong UK with every man, woman and child in Scotland receiving a “Union dividend” of nearly £2,000 a year.

‘These Scottish Government figures also show there would be a £12.6billion black hole at the centre of an independent Scotland’s finances. Real questions need to be asked about the First Minister’s stewardship of the country’s economy.’

The GERS report provides a detailed account of how all public money is raised and spent in Scotland. It shows total public spending per person in Scotland was £13,854 in 2018/19, £1,661 more than the UK figure of £12,193.

The average Scot contributes £11,531 to public coffers through taxation, when a geographic share of oil revenue is included, which is £307 less than the UK average.

It means the total ‘Union dividend’ has increased from £1,904 per person in 2017/18 to £1,968 last year.

Pamela Nash, chief executive of the Scotland in Union campaign group, said: ‘These official SNP Government figures show that all of us in Scotland benefit from our place in the UK. The SNP’s economic blueprint is in tatters.

‘It is beyond doubt that we are stronger in the UK, with the UK dividend worth nearly £2,000 to every person in Scotland.

‘In an independent Scotland, the SNP would take that money out of families’ pockets.’

The report, published by the Scottish Government, shows the total Scottish deficit was £12.6billion in 2018/19, which amounts to 7 per cent of Scotland’s annual Gross Domestic Product (GDP). This figure is lower than £13.8billion the previous year, which was 8.1 per cent of GDP.

However, the deficit has been cut at a much slower rate than across the UK, where it now stands at £23.5billion, or 1.1 per cent of GDP, compared to £41.8billion, or 2 per cent of GDP, in 2017/18.

It means that Scotland’s deficit as a proportion of the total economic output is now more than six times the UK’s. The deficit of 7 per cent of GDP is also higher than any other EU country.

If Scotland became independent and wanted to re-enter the EU, it would be expected to cut its deficit to less than 3 per cent of GDP – raising the prospect of huge tax rises or spending cuts.

Scottish Tory finance spokesman Murdo Fraser said: ‘These figures make it clear: had we followed Alex Salmond and Nicola Sturgeon’s advice in 2014 and backed independence, Scotland would now be facing up to an unprecedented financial black hole. Thanks to this Union dividend, we continue to dodge the SNP bullet.’ He added: ‘These figures show once again that the SNP’s independence obsession isn’t standing up for Scotland – it would wreck Scotland.’

The Scottish Government said the figures showed Scotland’s net fiscal balance had improved for three years in a row.

This was mainly down to increases in revenue raised, from £59.7billion in 2917/18 to £62.7billion in 2018/19, while total spending was £75.3billion, up from £73.5billion the previous year.

For the first time since she became First Minister, Nicola Sturgeon did not host a press event to answer questions about the GERS figures, as she was campaigning in Shetland ahead of next week’s by-election.

She left it to Finance Secretary Derek Mackay to take questions. He insisted economic performance is ‘strong’ but admitted the estimated notional deficit ‘is not where we want it to be’. He said an independent Scotland would look to cut spending in areas such as debt interest and defence.

He also refused to thank taxpayers of the rest of the UK for contributing to the ‘Union dividend’. He said: ‘No, these figures are a reason to have change, not to stay as we are.’

He has already used new income tax powers to widen the gap between Scotland and the rest of the UK, with everyone earning £27,000 or more now paying more income tax north of the Border.

Yesterday, he refused to rule out further tax hikes, saying: ‘Any decisions that I’ll make about the Budget will be presented to parliament in due course.’

He also denied Miss Sturgeon was ‘hiding’ from the figures. He said: ‘No, she is the leader of the party and First Minister of Scotland. She is in Shetland and Shetland is in Scotland. I’m Finance and Economy Secretary and I’m here to answer your questions.’

Comment – Page 16

‘Beyond doubt we are stronger in UK’