‘More urgent than ever we gain full financial powers to chart a way to sustainable recovery’

The GERS publication is based on estimated figures on total revenues raised in or approved to Scotland and total public expenditure in or on behalf of Scotland by the UK government – 40 per cent of the expenditure is reserved so reflects UK government policy choices.

GERS therefore reflects the current constitutional position and not the policy choices this government would make if it had the normal powers of most countries around the world; the publication sets out the context for why the status quo and the present constitutional arrangements are

unsustainable.

The Scottish Government has responded swiftly to the challenges of Covid-19 and has worked hard to protect Scotland’s economy, providing over £2.3 billion of support to businesses.

The public finances were already facing challenges this year due to the uncertainty caused by Brexit. We are now witnessing an unprecedented health and economic crisis. Countries across the world, including the UK, have increased borrowing to record levels and, as we emerge from the pandemic, high fiscal deficits will inevitably be one of the consequences.

That is why the UK Government should prioritise economic stimulus over austerity. I will also continue to press for the Scottish Government to be granted additional financial powers to enable us to tailor a response that meets Scotland’s needs.

Scotland, unlike most other countries around the world, large and small, does not currently have the full financial powers needed to chart a way to sustainable recovery from the economic impact of the pandemic.

The current situation, with the looming withdrawal of furlough support by the UK Government, means it is now more urgent than ever that we gain those powers.

Despite the pandemic, and the economic problems that inevitably will arise at the end of the Brexit transition period, we are determined that Scotland should emerge with a stronger, fairer, greener, and more resilient economy.

We continue to invest to protect and create jobs, support businesses and strengthen communities, but our ability to do that is constrained by our lack of borrowing powers.

It is important to stress that 40 per cent of spending and 70 per cent of revenue income in GERS, combined with key powers over the economy, are reserved to the UK Government and outside the control of the Scottish Government.

An independent Scotland would have the power to make different choices, with different economic budgetary results.”