Scotland’s deficit widened last year as a result of more spending on welfare while revenue declined, partly because of the shrinking North Sea oil and gas sector.
Government Expenditure & Revenue Scotland (GERS) figures for 2024/2025 show Scotland’s net fiscal balance – the difference between total revenue and total public sector expenditure – has worsened, with North Sea revenue falling for a second year in a row.
It has resulted in a deficit of 11.6% of GDP (£26.19 billion). Excluding the North Sea, it was an worse 14.3% of GDP (£30.26bn). This compared with a 5.1% deficit for the whole of the UK.
Scotland in Union, which campaigns against independence, said the GERS report “helps to illustrate how the whole of the UK benefits from the pooling and sharing of resources and risk.
“Public expenditure per person in Scotland on public services was £2,669 higher than the UK average in 2024/25, protecting our local communities in Scotland.
Alastair Cameron, chair of Scotland in Union, said: “As part of the UK, Scotland has billions of pounds of extra money for vital public services like the NHS and schools.
“The people of Scotland chose to stay together with the UK, enabling this continued sharing of resources and rejecting the SNP’s fantasy economics that even Nicola Sturgeon has now said stretched credibility.
“Remaining in the UK means we benefit from the UK’s economic heft, trade, global strength, and trusted currency.”
Scottish Labour Finance spokesperson Michael Marra said “These figures have laid bare the reckless financial vandalism of this SNP government.
“The SNP has already blown a hole in Scotland’s finances and its full fiscal autonomy plans would make a bad picture worse.”
Michelle Ferguson, director, CBI Scotland, said:?? “The fact that Scotland’s fiscal deficit has widened again in the latest GERS figures will be disappointing news for firms and households alike.
“Healthy public finances are essential to delivering high-quality public services, which in turn support business confidence, investment, and the skills base Scotland needs to grow its economy.”
The Scottish Government said the figures shows the delivery of sustainable public finances is being supported by a rise in devolved revenue.
The statistics show Scotland’s £91.4bn revenue was enough to cover all day-to-day devolved spending and all reserved social security, including the State Pension, which amounts to £84.9bn.
Devolved revenue grew by 9.7% in 2024-25, as devolved expenditure increased by 6.8%.
Finance Secretary Shona Robison said: “The decisions we have taken here in Scotland are helping support sustainable public finances. For the fourth year in a row, devolved revenues have grown faster than devolved expenditure.
“Scotland’s public finances are better than many other parts of the UK, with the third highest revenue per person in the UK, behind only London and the South East.
“The GERS statistics reflect only the current constitutional arrangements – of Scotland as part of the UK – and not an independent Scotland with its own policy, decisions on defence spending and the economy.
“GERS allocates Scotland a population share of reserved UK spending rather than accounting for real expenditure. For example, UK defence expenditure is listed as £5.1 billion, but only £2.1 billion was actually spent with industry in Scotland in 2023-24.
“Being taken out of the EU, against the will of the people of Scotland, has also hit Scotland’s revenues by £2.3 billion and the higher cost of UK government debt adds £500 million to the deficit.
“Falling oil prices and a decrease in extraction present challenges going forward, but we are clear in our support for a just transition for Scotland’s valued oil and gas sector, which recognises the maturity of the North Sea basin and is in line with our climate change commitments and energy security.”
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