Revenue slump from North Sea hits Scottish spending deficit

The impact of the downturn in the North Sea has been laid bare in new Scottish public spending figures.

Government Expenditure and Revenue Scotland (GERS) figures show Scotland ran a deficit of £14.8 billion in the last financial year, a £500 million increase on the previous year.

The data also shows a massive fall in revenues derived from oil and gas operations on the UK Continental Shelf.

In total, the North Sea generated revenues of £60m in 2015/16, a 97% drop from the £1.8bn generated in the previous year.

The fall included the period in which the global oil price fell off a cliff, with prices dropping from north of $100 per barrel to less than $30 at its lowest ebb.

However, a rise in revenues to £1.9bn from the onshore energy sector helped to offset the offshore performance.

Liz Cameron, chief executive of Scottish Chambers of Commerce, said the economy “can and should” be doing better.

Revenues from the North Sea fell dramatically in 2015/16.