The Courier & Advertiser (Fife Edition)
FM: Figures ‘no reflection’ of independent Scotland
Scots Conservatives say £15bn deficit ‘hammer blow’ to SNP aspirations
New figures showing Scotland has a deficit of just over £15 billion are not a reflection of how the country would fare if it were independent, Nicola Sturgeon has said.
The first minister spoke after the latest Government Expenditure and Revenue Scotland (Gers) statistics showed spending amounted to £15.1bn more than ministers received in revenues.
Scotland’s fiscal deficit grew to 8.6% of GDP in 2019-20, according to the data, up from 7.4% the year before.
Meanwhile, the UK deficit stood at 2.5% of GDP, compared to 1.9% last year.
Scottish Conservatives described the statistics as a “hammer blow” to the SNP’s aspirations for independence.
But Ms Sturgeon, who was asked about the figures at First Minister’s Questions, said they were a “reflection of Scotland’s fiscal position in the United Kingdom, not a reflection of how Scotland would fare as an independent country”.
Total public sector expenditure for the benefit of Scotland, including both UK and Scottish Government spending, rose by 3.1% to £81 bn.
This is equivalent to £14,829 per person in Scotland, £1,633 per person greater than the UK average.
While the figures incorporate the early stages of the coronavirus pandemic, the Gers report notes the impact will be greater in the next financial year.
Finance Secretary Kate Forbes reiterated her call for the Scottish Government to have further financial powers at a media briefing yesterday
She said: “Although Gers is not the Scottish Government’s budget and reflects the current constitutional arrangements whereby another government’s policy choices are allocated to Scotland, the publication sets out the context for why the status quo and the present constitutional arrangements are unsustainable.”
Ms Forbes said it was “incredibly frustrating” that Scotland could not borrow to invest in recovery.
She added: “Gers reflects the current constitutional position, there are perfectly legitimate questions to ask about these figures, but based on these figures nobody can or should defend the status quo of the current constitutional arrangements.
“Instead, this publication once again strengthens calls for additional fiscal and economic powers to manage our public finances in a sustainable way and invest in recovery.
“Scotland simply cannot afford not to have the powers of a normal independent country.”
The finance secretary was asked about the Fraser of Allander Institute think-tank’s initial response to Gers, which said Scotland’s deficit could grow to around 21% and 22% next year, and if this would be sustainable for an independent Scotland.
She said countries around the world had built up “unprecedented deficits” to deal with the pandemic which would be reduced over time.
Asked about the higher levels of per capita public spending in Scotland, she said: “I look at those figures and see the current constitutional arrangements as being unsustainable.”
Scottish Conservative finance spokesman Murdo Fraser said the figures do not take into account the “blockbuster support” from the UK Government, such as the furlough scheme.
He said: “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, every nurse and doctor, just to come close to balancing the budget in her separate state.
“It’s beyond dispute that the economic case for independence has never been weaker.
“Separating would cost Scotland £15bn a year that we need for our schools and hospitals.”