Tag: Economy

Scotland’s revenues grow by £3 billion

DEFECIT CONTINUES TO FALL 

Scotland’s notional deficit is falling faster than the UK’s, with onshore revenues increasing by 5.1% to reach £61.3 billion in 2018-19 as a result of continued economic growth.

According to the Government Expenditure and Revenue Scotland (GERS) figures published yesterday, Scotland benefitted from a £3 billion increase in onshore revenues in the last year – the fastest growth since 2010-11 as the overall notional deficit fell by £1.1 billion to 7.0% of GDP, down from 8%, in 2018-19.

The reduction in the notional deficit is the result of revenues growing at a faster rate than expenditure.

Commenting on the latest figures during a visit to manufacturing company Armadilla Ltd in Bonnyrigg, Finance Secretary Derek Mackay said: “With record tax revenues, strong economic growth and near record low unemployment, Scotland’s economy and public finances are strong. Today’s figures show overall revenue in Scotland reached £62.7 billion – exceeding £60 billion for the first time – reflecting the strength of our economy.

“Our notional deficit has fallen while public spending has increased thanks to our efforts to grow the onshore economy and the strong performance of taxes in Scotland. The Scottish Government’s choices on taxation are helping to create a more progressive tax system.

“This strong performance from Scotland’s economy is at risk as a result of the UK Government’s EU exit plans, and in particular a ‘no deal’ Brexit, which poses a severe threat to jobs, investment and living standards

“A ‘no deal’ Brexit could reduce revenues in Scotland by around £2.5 billion a year, holding Scotland back and demonstrating why people in Scotland increasingly recognise the importance of making our own decisions.

“These figures reflect Scotland’s position as part of the UK. The Scottish Government believes we could unlock our full potential with independence, allowing us to take the best decisions for Scotland.

“As we have always said, Scotland has a strong, and growing, economy and our future will be far brighter as an independent member of the EU.”

Westminster puts a different slant on the latest figures, of course. Commenting on the Scottish Government’s GERS figures for 2018-19, Scottish Secretary Alister Jack said: “Today’s GERS figures show clearly how Scotland benefits from being part of a strong UK with every man, woman and child in Scotland receiving a ‘Union dividend’ of nearly £2,000 a year.

“These Scottish Government figures also show there would be a £12.6 billion black hole at the centre of an independent Scotland’s finances. Real questions need to be asked about the First Minister’s stewardship of the country’s economy.

“With Scotland’s deficit now more than six times greater than the UK average, the Scottish Government needs to take action.

“Scotland remains the highest taxed part of the UK. This is harming our economy and should be a huge concern to us all.

“The UK Government is investing in Scotland to deliver jobs, opportunities and sustainable growth, including £1.4 billion for city and growth deals. We are working hard to support businesses and bring further opportunities as we leave the EU on 31 October.”

The UK Government notes:

  1. Using the Scottish Government’s own data, public spending in Scotland was nearly £1,661 per head higher than that of the UK average. In other words, in 2018-19 it was 13.6% higher than the UK average. Over the last five years, this gap has been on an upward trend from £1,182 or 10.2% in 2014-15 and £1,661 or 13.6% in the latest full financial year.
  2. Scotland’s tax contributions, at £11,531, continue to be around £307 per head less than the UK average, at £11,838.
  3. Scotland’s deficit [or borrowing] was nearly £1,968 per person larger than the UK average in 2018-19.
  4. Scotland contributed 8.0% of UK tax and received 9.3% of UK spending in 2018-19 (Scotland’s population share was 8.2% in 2018-19), demonstrating how Scotland receives secure and stable levels of spending irrespective of the volatile tax revenues from the North Sea.
  5. Whilst Scotland’s share of UK total revenue has marginally increased over the last year, it is generally on a downward trend. Since its peak at 9.7% in 2008-09, Scotland’s contribution to UK revenues has been on a downward trend in subsequent years and is currently at 8.0% of the UK total. This is marginally up from 7.9% the year before.
  6. Total North Sea revenues fell slightly from £1.30 billion in 2017-18 to £1.24 billion in 2018/19. This is up from a low of minus £85 million in 2015-16 and down from a peak in 2008-09 of £10.6 billion.
  7. Scotland’s net fiscal balance as a share of GDP was –7.0%, compared to –1.1% for the UK overall. This decreased from –8.1% in 2017-18, compared to the UK overall, which came down from –2.0%. In absolute terms, Scotland’s deficit was £12.6 billion in 2018-19, down from £13.8 billion in 2017-18 (incl. North Sea revenues).
  8. While Scotland’s overall fiscal position improved in 2018-19, Scotland’s deficit as a share of its economy is over 6 times higher than that of the UK.

You pays your money, you takes your choice. Make your own mind up:

The full statistical publication is available at http://www.gov.scot/gers

 

Wages rising at fastest rate in a decade

The UK’s employment rate is a joint-record 75.8%, rising by 3.55 million since 2010, says the DWP.

Employment rate remains high at 75.8%

 

UK wages are increasing at their joint-fastest rate in a decade, with unemployment remaining low at 4 per cent. The figures, published today by the Office for National Statistics (ONS), showed that wages outpaced inflation for the eleventh month in a row.

Unemployment rate remains low at 4%

 

The new figures confirmed that 2018 was a year of “widespread employment opportunity” showing:

  • a record high employment rate for people from ethnic minority backgrounds of 66.2%
  • 145,000 more disabled people found work since last year, an overall increase of 930,000 in the last 5 years
  • more women are in the workplace than ever before, 15.31 million. The female employment rate is also a record – 71.4%

Minister of State for Employment Alok Sharma said: “While the global economy is facing many challenges, particularly in sectors like manufacturing, these figures show the underlying resilience of our jobs market – once again delivering record employment levels.

“Our pro-business policies mean we have started the new year with a strong labour market, with wages outpacing inflation for the eleventh month in a row, and more people in work than ever before. It’s also excellent news that we see the rate of women in employment at a record high.

“Of course, we need to ensure that we continue to provide one-to-one support for anyone whose jobs may be at risk, or who might be looking to move to a new role.”

The DWP press statement says government is helping even more people benefit from a ‘well-paid job’ by:

  • backing businesses to create good jobs with our modern Industrial Strategy, while ensuring they play by the rules, so we are closing tax loopholes, strengthening workers’ rights, and tightening the rules big businesses must follow
  • investing in the infrastructure, training and apprenticeships we need for our future, with public investment at the highest sustained level in 40 years
  • introducing Universal Credit which is helping people move into work faster and stay in it longer, while recent

Westminster Budget measures mean 2.4 million families will keep up to an extra £630 a year of what they earn:

  • helping people stay in work longer with our Fuller Working Lives strategy, which supports employers to recruit, re-train and retain older workers
  • tackling inequalities in employment highlighted by the Race Disparity Audit, through targeted support in 20 areas around the country and £90 million announced by the Prime Minister to help young people.

Clearly, we’ve never had it so good. That’s right, isn’t it?

Edinburgh slips to sixth in UK city rankings

  • Oxford and Reading top growth league for third year running, but Preston most improved.
  • Cities in the Midlands & North of England amongst fastest improving for second year running
  • Falling unemployment helped some cities improve ranking in latest year, overtaking most improved cities from previous years
  • The price of success in terms of reduced housing affordability and increased average commuting times is becoming increasingly evident for cities at the top of the index rankings

Edinburgh has dropped from fourth to six place in the rankings of the UK’s top cities in analysis published today.  Oxford and Reading top the index. Continue reading Edinburgh slips to sixth in UK city rankings

Analysing the Budget: Short-changed or delivering for Scotland?

The Budget committed £1 billion in extra money for Scotland, maintained the freeze on whisky and fuel duty, and saw a £150 million investment in the Tay City Region Deal. The Chancellor also committed to progress growth deals in Ayrshire, Moray and Borderlands. A good deal for Scotland, then? Aye, right! was the response from Holyrood. Continue reading Analysing the Budget: Short-changed or delivering for Scotland?

Billion-pound backing for “catapult centres”!

  • £780m of extra funding for high-tech hubs
  • This builds on £180m announced last month for North East
  • £96m of extra funding for high-tech hub in Scotland
  • Backing for British expertise at 40-year high
  • Latest GDP figures confirm economy continues to grow

Britain’s world-leading researchers and entrepreneurs will benefit from an additional £780 million to create the technologies of tomorrow, the Chancellor announced yesterday. Continue reading Billion-pound backing for “catapult centres”!

Leaders sign off City Deal

£1.3 Billion boost for local economy

Prime Minister Theresa May and First Minister Nicola Sturgeon joined council, business and academia leaders to formally sign off the Edinburgh and South East Scotland City Region Deal yesterday.

The £1.3 billion deal will deliver inclusive economic growth across the region through housing, innovation, transport, skills and culture. The Scottish Government and the UK Government will each invest £300 million over the next 15 years.

The Scottish Government’s investment will contribute towards 41,000 new homes, 21,000 jobs and improve the skills of an estimated 14,700 people.

The Scottish Government’s investment in the City Region includes:

•         £60 million towards a Data Driven Innovation programme of investment, including the creation of economic infrastructure across the region to ensure that businesses and communities across the region are fully able to engage in the resulting opportunities
•         £65 million towards a regional housing programme, including the creation of a new housing company and housing infrastructure funding to enable the delivery of 41,000 new homes
•         £120 million for transport improvements to Sheriffhall Roundabout
•         £20 million for public transport improvements in West Edinburgh
•         £25 million for an Integrated Regional Employability & Skills Programme to reduce skills shortages and gaps and deliver opportunities for people across Edinburgh, the Lothians, Fife and the Borders
•         £10m towards a new concert venue for the city, providing a home for the Scottish Chamber Orchestra and reinforcing Edinburgh’s reputation as a leading centre for music and the performing arts.

In addition, the Scottish Government is also providing Edinburgh Festivals with a £5 million investment over the next five years to fund The Platforms for Creative Excellence (PLaCE) programme which supports new innovative programming and skills development opportunities across the capital’s 11 major festivals between 2018-2023.

First Minister Nicola Sturgeon said: “Edinburgh and the South East of Scotland is an area of huge importance to the Scottish economy.  The region contains over a quarter of Scotland’s population and contributes £33 billion to the Scottish and UK economies.

“The Scottish Government’s £300 million investment in the City Region Deal will contribute towards 41,000 new homes, 21,000 jobs and improve the skills of an estimated 14,700 people across the region. Our investments will ensure businesses and communities from across the region benefit from the opportunities created by this the city region deal.

“Taken together these projects will help the region continue to thrive and grow, fulfilling our ambitions for the region to be one of the fairest and most inclusive areas in the country.”

Prime Minister Theresa May said:  “It is fantastic to be here at the University of Edinburgh to sign off on the Edinburgh and South East Scotland City Deal.

“We are in one of the great cities of our United Kingdom, at a time of year when it serves not just as the capital of Scotland but as the cultural capital of the world.

I had the privilege of experiencing first-hand some of the cultural riches that the Edinburgh Festivals have to offer earlier today, and a great pleasure it was to do so. The Festivals are an international calling-card for Edinburgh and the surrounding area and when people come to take part in them they find a city and a region that has huge potential for the future. You see it clearly in the imagination and creativity on display here every August.

“But you see it too in the innovative and ground-breaking work that goes on in this city and area all year round. In great universities and colleges. In high-tech businesses. In financial and legal services hubs.

This is a city and a region that has so much to offer Scotland, the UK and indeed the world.

“The Edinburgh and South East City Deal is all about building on those strengths to open up new opportunities for the future in the creative industries, in research, in housing, in transport and in skills, and it will have a lasting legacy.

The UK and Scottish Governments are both helping to build the IMPACT Concert Hall – a new venue to cement Edinburgh’s place as the world’s Festival City.

The City Deal partners also want to turn Edinburgh into the Data Capital of Europe.

“So we are providing capital investment to develop new data storage and analysis technology here in Edinburgh. This great new facility, the Bayes Centre, will open in the autumn with UK Government investment, and will provide shared working spaces for applied data science and artificial intelligence research teams.

“It is one of five hubs across the city that will use data technology to support research and development activity in sectors of the future, from fin-tech and robotics to bio tech and health sciences. I want the UK to lead the world in these technologies. I want us to have the best regulation, the most advanced research and the most lucrative commercial applications.

“The City Deal will put Edinburgh at the cutting edge of that work and it is exciting to think about the future possibilities that this investment will open up. UK City and Growth Deals are a key part of our Modern Industrial Strategy. The UK Government has already committed over £1 billion to them here in Scotland.

Five have been signed, and three more are being negotiated.

“Just like the Modern Industrial Strategy as a whole, they are a partnership between Government at all levels, business and academia to combine our resources and to tackle the challenges of tomorrow. Because I believe we can achieve far more together than we ever could apart.

“So thank you to all the Deal partners for your work to get us here: The University of Edinburgh, who have hosted us today, as well as Heriot-Watt University, Edinburgh Napier University, and Queen Margaret University.

“To the local authorities: Edinburgh City Council, Midlothian Council, East Lothian Council, West Lothian Council, Scottish Borders Council and Fife Council. And of course our colleagues in the Scottish Government.

“This is a great day for the south-east of Scotland and an exciting step towards a brighter future for this wonderful part of the UK.”

2017 was record year for overseas visitors

“Tourism is the heartbeat of the Scottish economy”

Visits and spending by overseas tourists in Scotland rose to its highest level on record in 2017. The ONS Travel Trends 2017 statistics showed the number of overseas tourists visiting Scotland rose by 16.9% to 3.2 million, while expenditure increased by 23% to £2.3 billion.

The record figures were driven by European visitors who made 1.9 million visits to Scotland, a 17% increase from 2016, with spending rising by 36% to £1.1 billion. Across the UK as a whole the number of European visitors increased by 1% and spending fell by 1%.

A range of factors made Scotland an attractive place to visit in 2017 including events associated with the Year of History, Heritage and Archaeology, the Outlander effect and VisitScotland digital activity.

Tourism Secretary Fiona Hyslop said: “These figures show 2017 was a record year for overseas tourists visiting and spending money in Scotland, which is great news for the industry and our economy.

“Tourism is one of our most important industries, employing 207,000 people, creating jobs, supporting the local economy and building on our strong international reputation.

“As we get closer to the UK’s departure from the EU, we will continue to do all we can to ensure people from across the EU and elsewhere are welcome to work in our tourism sector and visit our beautiful, vibrant country.”

Malcolm Roughead, VisitScotland Chief Executive, said: “Today’s figures herald a remarkable period for Scottish tourism, with overseas visits in 2017 reaching a record high.

“These outstanding results show that Scotland can compete on a global stage. Using our unrivalled beauty, rich history, pioneering partnerships and innovative thinking we are communicating with visitors from every corner of the world.

“Groundbreaking apps, creative digital campaigns and inspirational content means we can reach visitors and potential visitors at every step of their journey, informing the visitors of today and inspiring the visitors of tomorrow.

“Tourism is the heartbeat of the Scottish economy, causing a ripple effect which touches every industry and community, creating employment and economic growth. Buoyed by the success of today’s figures we look forward to continue working with our partnerships across every aspect of the tourism industry to make sure Scotland is at the top of everyone’s list to live and work, invest, study and visit.”

The figures are available to view and are the highest for overseas tourists since the survey began in 1961/62.