NICOLA Sturgeon has stressed Scotland is prosperous and the foundations of its economy “remain strong” as the latest figures on the country’s finances showing a growth of £1.9 billion in onshore revenues were published.
The First Minister revealed the increase in cash raised from levies such as income tax, VAT, national insurance and corporation taxes more than offset a downturn in offshore revenues during the last financial year due to the low global oil price.
But she warned Brexit put recovery at risk and that Scotland may be forced into “economic retreat” because of the hazards being put on the wider UK economy from the vote to leave the European Union.
She dismissed the argument made by Unionist critics who have insisted that the UK has offered Scotland’s economy protection.
“We have suffered cuts to our budget from the UK Government over the past years and the path the UK is on in terms of Brexit will compound the economic challenges that Scotland and indeed the whole of the UK faces,” she said.
“It’s even less credible now to say that somehow the UK is a safe haven and somehow protects Scotland. The UK path is very hazardous in terms of facing up to the challenges.”
She was speaking at a press briefing in Glasgow as the latest Government Expenditure and Revenue Scotland (GERS) figures, which set out how much revenue is raised in Scotland and how much the country spends, were published.
They revealed that because of the continuing low oil price the country’s share of revenue generated from the North Sea industry fell by 97 per cent in 2015-16, leading to a £14.8 billion deficit in the balance books, up from £14.3 billion the previous year.
But anticipating the calls from critics who have claimed that the deficit should mean the case for independence is weakened, she insisted the country’s economy was fundamentally sound. “The foundations of our economy remain strong. Scotland, in terms of economic output per head – and even excluding offshore revenues – remains the most prosperous part of the UK outside of London and south-east England,” she said. “Today’s GERS publication shows that our onshore revenues continue to grow, with revenue increasing by £1.9 billion over the year, more than offsetting the decline in offshore revenue.
“The lower oil price has, of course, reduced offshore revenues, with a corresponding impact on our fiscal position – this underlines the fact that Scotland’s challenge is to continue to grow our onshore economy.”
She added: “However, Scotland’s long-term economic success is now being directly threatened by the likely impact of Brexit.
“Today’s figures come a day after analysis from Scottish Government showed that taking Scotland out of the European Union and our place in the world’s biggest single market would make the task of growing and diversifying the Scottish economy even harder.
“Maintaining our relationship with the EU will help us sustain the economic growth and job creation that we have seen in recent years.
“But if we were to allow Scotland to be forced out of the EU against our democratic will, then we will see Scotland’s economy as a whole take a hit worth up to £11.2 billion pounds per year by 2030.
“It is coming down to a clear choice between economic recovery with a continued place in Europe and the single market – or economic retreat with Brexit.”
Cabinet secretary for finance and the constitution Derek Mackay said: “It is important to note that GERS represents Scotland’s fiscal position under the current constitutional arrangements. The position if Scotland was to become independent would depend on a range of factors which are not reflected in this publication.”
Patrick Harvie, Scottish Greens finance spokesman, said the figures show Scotland cannot rely on oil for its future and he called for “a joined-up plan” from the Government.
A chorus of views from the Unionist parties said the figures illustrated the economic benefits of Scotland remaining in the UK and exposed “flaws” in the case for independence.
Scottish Conservative finance spokesman Murdo Fraser said: “Today’s GERS analysis simply confirms the fact that Scotland benefits massively from being a member of the United Kingdom.
“This Union dividend amounted to £1,600 for every man, woman and child last year, according to these figures.”
Scottish Labour leader Kezia Dugdale said the figures should “act as a reality check for those calling for another independence referendum”, while Scottish Liberal Democrat leader Willie Rennie said the case for independence “has been swallowed up by a £14 billion black hole”.
http://www.thenational.scot/news/Plea for action to boost the economy via business growth.21588
http://www.thenational.scot/news/Sturgeon’s prosperity claim backed by top economist.21583
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