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The National (Scotland)
The National (Scotland)
National
Hamish Morrison

Unionist politicians flout expert warning on GERS figures

(Image: Jane Barlow/PA Wire)

UNIONIST politicians have flouted a warning from economic experts as they claimed new Scottish Government spending figures undermined the case for independence.

Official estimates from the Scottish Government showed that the country’s “notional” deficit was reduced to £25.3 billion while public spending per head remained higher than in the UK as a whole.

The Tories claimed the numbers showed that independence “would be disastrous for the nation’s finances”, contradicting a leading economic think tank which warned against this interpretation.

The Fraser of Allander Institute, based at Strathclyde University, said on the eve of the publication of the Government Expenditure and Revenue Scotland (GERS) statistics that they told nothing about the economics of an independent Scotland.

The non-partisan institute said that using GERS to attack the economic case for independence “is to misuse it”.

Nevertheless, Scottish Tory finance spokesperson Craig Hoy said the estimates “reveal that Scots are now benefitting from a record Union dividend”.

He added: “Every single Scot is over £2,700 better off because we are part of a strong United Kingdom.

“Yet John Swinney and the SNP want to put an end to all of this with their obsessive push for Scottish independence.

“That would be disastrous for the nation’s finances. Things are already bad enough after two decades of SNP economic incompetence, which sees ministers continue to squander a record Union dividend on their pet projects and imposing the highest taxes in the United Kingdom.

“But losing access to the UK’s funding model would only mean even more tax hikes on hard-pressed Scots and devastating cuts to our struggling public services.”

Scottish Labour’s finance spokesperson Michael Marra added: “Today’s GERS figures show that Scotland pays its fair share of tax but enjoys higher public spending thanks to redistribution throughout the UK. Billions of pounds of that money has been wasted by the SNP instead of supporting public services, driving growth, and reducing poverty.

“These figures underline the strength of pooling and sharing resources across the UK and the additional funding available to support Scotland’s public services.”

Scottish Secretary Douglas Alexander argued that the statistics “clearly demonstrate the value to people in Scotland of being part of a strong United Kingdom”.

(Image: Yui Mok/PA)

He added: “By pooling and sharing resources across the country, people living in Scotland benefit from significant additional public spending. That means £2720 more per person compared to the UK average, which the Scottish Government can spend on vital services like schools, hospitals and transport.”

Reform UK Scotland leader Malcolm Offord said: “This year’s GERS figures go beyond the usual damning indictment of how the SNP spends taxpayer money – Scotland’s tax take is now rising at a much faster rate than we are seeing invested in public services. 

“Scots now have the data showing they are seeing less bang for their buck. It's time to challenge the money evaporating into a bottomless welfare bill, the quarrel of quangos and politically ideological net-zero policies.

“That money that could be spent on more nurses, more teachers and more money returned to people’s pockets.”

LibDem finance spokesperson Liam McArthur added: "What these figures show is that Scots are better off from being part of a strong United Kingdom.

"Access to funding puts us in a better place than we'd otherwise be but that doesn't mean success is guaranteed.

"Now we need a government that is locked in on the key issues like fixing the NHS, mending Scotland’s creaking infrastructure and growing the economy. If that relentless focus can be accomplished there is no reason why Scotland cannot flourish."

Jenny Gilruth, the Scottish Government’s Finance Secretary, said the numbers did not reflect what the position of an independent Scotland would be.

She said: “The significant increase in income tax revenues shows that the decisions which this Government has taken are helping to deliver additional funding for measures to ease the cost of living like the Scottish Child payment, free prescriptions, bus travel for under-22s and free university education.

“GERS provides notional estimates for Scotland’s deficit as part of the UK – it simply does not show what an independent Scotland’s position will be.

“With the powers of independence we would be able to chart a different path, ensuring we grow the economy to allow Scotland to reach her full potential.”

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