Study reveals Scotland's budget surplus

Scotland would be in budget surplus to the tune of more than £800 million with a "geographical share" of North Sea revenues, official figures today showed.

The Scottish Government today published the Government Expenditure and Revenue in Scotland report (GERS) which shows government spending in Scotland compared with what is raised.

Today's report is the first to be published under the SNP administration and includes a figure for Scotland's position if it was to receive its share, about 83% according to Aberdeen University experts, of North Sea revenues.

This would see the country's budget surplus stand at £837 million (0.7% of GDP) in 2006/07 - compared with a UK deficit of £4.3 billion.

Finance secretary John Swinney said the report shows the "flow of resources from Scotland to the rest of the UK is some £1.2 billion."

"This year's GERS publication has been informed by an updated and detailed analysis of North Sea revenues by Aberdeen University, enabling a geographical share to be allocated to Scotland's accounts.

"Indeed, as North Sea oil revenues soar, city accountancy firm Grant Thornton estimates that Scotland's surplus would now stand at some £4.4 billlion."

SNP MP Stewart Hosie also welcomed the figures, describing them as "game, set and match for the economics of independence."

“Whilst even GERS shows Scotland would be in a far healthier financial position than the UK as a whole, it is clear that the flow of resources is from Scotland to the rest of the UK, not the other way round," he said.

“The SNP have long known that Scotland could flourish as an independent country, now GERS shows that Scotland would be a prosperous nation with a budget surplus.

“With these figures based on oil prices of only $65 it is abundantly clear that with current prices of over $120 a barrel – meaning an offshore windfall of £4-5 billion this year on top of the £10 billion forecast at the time of the Budget – Scotland’s black gold is plugging the Treasury’s black hole.

“Today’s GERS figures finally put to rest the daft arguments spouted by the London based parties for years.  The naysayers and doom-mongers of Scotland’s financial future will need to rethink their position.”

Officials say the figures are the most accurate picture yet of Scotland`s fiscal position, with more than 3000 budget lines having been queried with the Treasury since the last figures were produced.