Any claim that Scotland’s finances are in better shape than the UK is now long gone

Analysis John Mclaren

ith the release of the latest GERS data, the annual scrap over the relative strength or weakness of Scotland’s public finances is becoming a bit of a mismatch.

The (valid) claims of only a few years ago, 2008-8 to 201112 to be precise, that Scotland’s public finances were in better shape than those of the UK are now long gone. The explanation for this turnaround is simple – the demise of North Sea oil tax revenues.

In 2008-9, the North Sea was second only to income tax as a source of government revenue for Scotland, almost £9 billion. In the last two financial years, it has been effectively zero. Not only that but prospects for a bounce