Scotland share of North Sea oil revenue is negative

SCOTLAND’S geographical share of North Sea oil revenues was negative for the first calendar year on record in 2016, Scottish Government figures show.

The latest quarterly national accounts reveal the amount received in tax receipts fell to minus £338 million over the 12-month period.

When a geographical share of UK offshore and overseas economic activity is included, Scottish gross domestic product (GDP) is estimated at £159 billion during the year, or £29,554 per person, amounting to growth of 1.7 per cent.

Growth in onshore GDP was mostly driven by consumer spending, with positive contributions also made by government, capital investment and exports.

However, a widening of the onshore trade deficit due to the increasing value of imports had a negative impact.

Economy Secretary Keith Brown said the latest statistics “highlight the challenges facing the Scottish economy”.

He said: “Current headwinds relating to the oil and gas sector and Brexit uncertainty are continuing to weigh on growth.

“Despite this, recent business survey evidence shows positive signals for manufacturing and other sector.”

Analysis by economist John McLaren said the decline in North Sea revenues contrasted with a period of relative stability between 2005-2012 when Scottish offshore oil revenues did not fall below £6bn in any single year.

He said: “Worries persist over the economy’s future growth potential and over the self-financed element of the Scottish budget.”