In response to the latest Government Expenditure and Revenue Scotland (GERS) figures, Stuart McMillan MSP has emphasised that these figures reflect the limitations of Scotland’s constitutional position within the UK – not the financial reality of an independent Scotland.
The figures were published by the Scottish Government earlier this week and indicate that Scotland has a spending deficit due to bearing a share of the UK Government’s debt.
However, the GERS figures also show Scotland’s £91.4 billion revenue was enough to cover all day-to-day devolved spending and all reserved social security, including the State Pension, which amounts to £84.9 billion.
Commenting on the report, Stuart said:
“The Finance Secretary has rightly pointed out that devolved revenues have grown faster than devolved spending for the fourth consecutive year. That’s a clear sign of responsible fiscal management.
“But the GERS figures also include UK-wide spending – such as defence – that artificially inflates Scotland’s apparent deficit.”
The Inverclyde SNP MSP also highlighted the damaging impact of Brexit and UK Government debt on Scotland’s finances, arguing that independence would allow for more tailored and transparent economic decisions.
He continued:
“An independent Scotland could make choices that reflect our priorities. For example, we could reduce VAT on the hospitality sector – something most European countries already do.
“We could also cut VAT on electric vehicle charging points, making it cheaper to switch to cleaner transport – and we could finally benefit from cheaper electricity.
“The Chief Executive of Octopus Energy has said Scotland could have the lowest energy bills in Europe if we had a regional pricing model. Yet the UK Government has ruled this out, forcing us to pay companies to turn off wind turbines instead of letting us access free, green energy.”
“An independent Scotland wouldn’t need to ask permission to implement these policies. Right now, Westminster says no to all three. Where is the fairness in that?
“The GERS figures will always give an unfair impression of Scotland’s finances. The most important takeaway is this: Scotland generated more in tax last year than it spent. It’s not about whether Scotland can afford independence, but whether we afford to not be independent.”
