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

 

People’s Vote: Let Us Be Heard rally at The Meadows this afternoon

Labour MP Jess Phillips and SNP MP Joanna Cherry will join a stellar line-up of comedians at the Edinburgh Fringe Festival for a People’s Vote ‘Let Us Be Heard’ rally in Edinburgh today.

They will be joined by top comics Andrew Maxwell, Grace Campbell and Fred MacAulay as well as the renowned ‘Graffiti Granny’, Hazel Jones. Continue reading People’s Vote: Let Us Be Heard rally at The Meadows this afternoon

Work together to stop No Deal Brexit, SCVO urges party leaders

THIRD SECTOR CHIEF WARNS OF ‘PERFECT STORM’

The Scottish Council for Voluntary Organisations (SCVO) has issued an open letter to all UK Parliament party leaders demanding action to stop a no-deal exit from the European Union. Continue reading Work together to stop No Deal Brexit, SCVO urges party leaders

Briggs: Critical Care delayed discharges at the Western General remain highest in Scotland

This week’s Audit of Critical Care in Scotland report has revealed that the critical care unit at the Western General Hospital in Edinburgh has significantly higher delayed discharge rates than the rest of Scotland. Continue reading Briggs: Critical Care delayed discharges at the Western General remain highest in Scotland

Doubts over Erasmus+ after EU exit

The Scottish and Welsh Governments have raised serious concerns about the impact of a ‘no-deal’ Brexit on the popular Europe-wide international student exchange program Erasmus+.

In a letter to Secretary of State for Education Gavin Williamson, Scottish Further and Higher Education Minister Richard Lochhead and Welsh Education Minister Kirsty Williams have argued the case for continued participation in the exchange programme.

They say leaving the EU without a deal – and without the UK Government reaching an alternative Third Country agreement or other arrangement – would see universities, colleges, and schools across the UK ineligible to submit applications to participate in the final year of the current Erasmus+ programme in 2020.

Between 2014 and 2018, more than 15,000 students and staff from Scotland reaped the benefits of the EU-led scheme, which allows funded temporary study overseas as part of the their Scottish courses.

Mr Lochhead said: “Thousands of Scottish students benefit from Erasmus+ yearly, proportionally more than from any other country in the UK. The Scottish and Welsh Governments are clear that we must remain a full participant in Erasmus+.

“I am also alarmed to hear the UK Department for Education could be considering an Erasmus+ replacement programme for England only – with potentially no consequential funding for Devolved Administrations (DAs) to put in place their own arrangements. That’s why we have written to the UK Government calling for urgent action and assurances that Scottish students won’t miss out.

“It is the Scottish Government’s preference to remain in the EU, but in the event of a damaging ‘no-deal’ Brexit, students could now see the door to this fantastic cultural and educational exchange slammed shut.

“It is unacceptable that with less than 12 weeks left until the UK Government plans to take the United Kingdom out of the EU without an agreement in place, there is still no plan for alternative arrangements.”

Two recent studies have underlined how Erasmus+ continues to enhance students’ quality of life and career prospects – both during their course abroad, and long after it finishes. The research also highlights the programme’s success at driving innovation and social inclusion in higher education.

The results of the impact studies show Erasmus+ significantly benefits students’ career prospects and personal development.  The programme can act as a guide for students to discover what they want to do after their studies  – making for a happier career; Erasmus+ has also been shown to drive innovation and social inclusion in higher education.

Every year, more than 300,000 students study or train under the Erasmus+ umbrella – over five million students have directly benefitted since the launch of the programme in 1987. The Higher Education Impact study found that 80 percent of Erasmus+ graduates are employed within three months of graduation, with 72 percent stating their Erasmus+ experience helped them land their first job.  Nearly half of Erasmus+ trainees were offered a job in the company where they trained.

More than two-thirds of Erasmus+ students and trainees gained new insight about their career choices through studying or training abroad. This added awareness has allowed students to better orient their studies and training to match their career ambitions – leading to both happier careers and expanded professional opportunities.

The studies have also highlighted how Erasmus+ builds a sense of European identity and social cohesion. 90 percent of Erasmus+ students feel the programme has improved their ability to collaborate with people from different cultures, and are more positive about the role of the EU in society.

Erasmus+ mobility also supports the growth of innovative learning and teaching practices – as well as the expanded use digital technologies. Nearly 80 percent of academics reported their experience abroad has led to the development of more modern and innovative teaching practices and curricula in their faculties.

The impact study on Erasmus+ Higher Education Strategic Partnerships and Knowledge Alliances found that Erasmus+ has spurred equality in education – with nearly two-thirds of universities stating projects under Erasmus+ have increased social inclusion and non-discrimination in higher education.

Cooperation projects under Erasmus+ have also allowed students, higher education staff and other stakeholders to develop vital innovation and business skills. Over one in four projects under Erasmus+ contribute to strengthening entrepreneurial education and entrepreneurship – with nearly a third of these projects resulting in start-ups and spin-off enterprises.

 

 

Government Minister for Scotland visits Edinburgh robotics centre

Scotland Office Minister Robin Walker was given a tour of Heriot-Watt University’s world leading robotics facilities as he discussed progress on the creation of a National Robotarium yesterday. Continue reading Government Minister for Scotland visits Edinburgh robotics centre

Brexit ‘no deal’ preparations stepped up

First Minister warns a ‘no deal’ exit will “inevitably cause disruption”

The Scottish Government will do everything in its power to stop a deeply damaging ‘no deal’ Brexit, the First Minister has confirmed.

At a cabinet meeting ministers also agreed to step up preparations for a ‘no deal’ after the UK Government’s refusal to enter into negotiations with the EU made such an outcome more likely.

The First Minister will chair a meeting of the Government’s Ministerial Group on EU Exit Readiness next week.

The First Minister said: “In its first week the UK Government has shown it is willing to risk a ‘no deal’ Brexit. Taking Scotland out of the EU in any way is deeply undemocratic but the Prime Minister’s refusal to engage with the EU has dramatically increased the prospect that we will face a deeply damaging ‘no deal’ Brexit.

“If the Prime Minister continues with this approach Scottish jobs will be lost and our economy seriously damaged and it will be entirely the UK Government’s responsibility.

“Having assessed the actions of the new UK Government our work to prepare for ‘no deal’ will intensify in the coming weeks and months. But even with the best possible preparations, leaving the EU without a deal will hurt Scotland’s businesses, disrupt trade and impact on all aspects of society. There is simply no way to mitigate every impact that ‘no deal’ will have, no matter how hard we try.

“The willingness of the UK Government to pursue this approach, against all the evidence, shows why we must continue to make preparations for a referendum that will give people the right to decide Scotland’s future, instead of being dragged out of the EU against their will.”

Despite the Scottish Government’s concerns a No Deal Brexit is looking increasingly likely. The  EU is not minded to renegotiate an agreement and the Westminster government’s rhetoric suggests that the UK will leave the EU on 31 October, deal or no deal. 

Yesterday, Communities and Local Government Secretary Rt Hon Robert Jenrick MP (above) said local councils should be fully prepared to leave the European Union by the end of October, as he ramped up preparations.

Mr Jenrick thanked councils for all the work they have already done, but said they must step up vital preparations and committed £20 million for councils across England to prepare for delivering Brexit on 31 October, whatever the circumstances.

He has asked each council to designate a Brexit lead to work with central government and oversee teams in every community who will work with stakeholders in their area to plan intensively for Brexit.

The new funding comes in recognition of the central role councils will play to make sure their residents are ready for Brexit, and is expected to support a range of activity including communications, training and the recruitment of staff.

Mr Jenrick will continue to talk to local council leaders to give them the opportunity to discuss preparations and the opportunities of Brexit ahead.

Communities and Local Government Secretary Rt Hon Robert Jenrick MP said: “From Whitehall to town halls – everyone needs to be ready to fulfil our democratic mandate to leave the European Union by the end of October.

“Local government has a vital role in helping to make Brexit a success and it is absolutely right that together we intensify preparations in every community.

“And to do this successfully I have asked every council (in England – Ed) to appoint a Brexit lead to work with government. We’ll be providing £20 million for councils to support the major step up in preparations.

“I want all of us – central and local government – to be fully prepared for leaving the EU on 31 October whatever the circumstances. I know that we can achieve this, by continuing to work side by side with renewed national focus and intensity.”

The UK government recognises that certain areas face more acute pressures. It is currently considering how best to allocate funding to ensure that those areas where greater impacts are expected, such as high impact ports of entry, get the funding they need in order take appropriate steps.

At his first meeting with senior leaders from English local authorities since becoming the Communities and Local Government Secretary earlier this week, Mr Jenrick told representatives that the government will support them to ensure they are ready to leave the EU in just under 90 days’ time.

Departments will continue to assess and, if appropriate, fund any potential new requirements of local authorities as part of Brexit work they are undertaking.

In January the UK Government committed £58 million of funding to support local authorities in their preparations for Brexit.

 

Chancellor allocates extra £2.1 billion to ‘turbo-charge No-Deal Brexit preparations’

  • Chancellor doubles Brexit funding for this year, announcing £2.1 billion to prepare for no deal.
  • New immediate cash boost of £1.1 billion to prepare critical areas for EU exit on 31 October.
  • A further £1 billion available to enhance operational preparedness this year if needed.
  • Funding will accelerate preparations at the border, support business readiness and ensure the supply of critical medicines.

An immediate cash boost to help get the UK ready for Brexit on 31 October has been announced by the Chancellor of the Exchequer, Sajid Javid. Continue reading Chancellor allocates extra £2.1 billion to ‘turbo-charge No-Deal Brexit preparations’

Health: Tories call for greater use of private sector to cut waiting times

The amount spend by NHS Lothian on private treatment for inpatients has reduced significantly over the last five years. Inpatient (IP/DC) private spend has dropped from £15,751,689 in 2014/15 to just £1,339,216 in 2018/19. Continue reading Health: Tories call for greater use of private sector to cut waiting times