Scotland’s public finances have received a boost, with new figures showing devolved revenues are rising faster than expenditure for the fourth year running.
According to the latest Government Expenditure & Revenue Scotland (GERS) statistics for 2024–25, revenue raised in Scotland reached £91.4 billion.
That was enough to cover all day-to-day devolved spending, plus the full cost of reserved social security, including the State Pension, which amounted to £84.9 billion.
Devolved revenue rose by 9.7 percent over the year, while devolved spending increased by 6.8 percent.
The gap between what Scotland raises and what it spends remains a challenge, however, with a worsening net fiscal balance largely attributed to falling oil and gas revenues.
Finance Secretary Shona Robison welcomed the figures as a sign that the Scottish Government’s financial strategy is delivering resilience and stability, even in a volatile economic climate.
“The decisions we have taken here in Scotland are helping support sustainable public finances,” she said.
“For the fourth year in a row, devolved revenues have grown faster than devolved expenditure.”
She pointed out that Scotland now has the third highest revenue per person in the UK, behind only London and the South East.
Ms Robison stressed that the GERS figures reflect the current constitutional framework and the limitations that come with it.
The report assigns Scotland a population share of total UK expenditure, including areas not directly controlled by the Scottish Government, such as defence.
“UK defence expenditure is listed as £5.1 billion, but only £2.1 billion was actually spent with industry in Scotland in 2023–24,” she noted.
She also highlighted the long-term impact of Brexit, which continues to weigh on Scotland’s revenues.
“Being taken out of the EU, against the will of the people of Scotland, has hit our revenues by £2.3 billion,” she said.
“And the higher cost of UK government debt adds a further £500 million to the deficit.”
Despite the downturn in oil prices and a decrease in extraction, Ms Robison reaffirmed the Scottish Government’s commitment to a fair and managed shift for the North Sea sector.
She described the transition away from fossil fuels as essential for meeting climate goals, supporting energy security and protecting jobs.
The figures offer a complex but encouraging picture.
They show Scotland’s ability to raise and manage revenue under devolution continues to improve.
But they also underline the structural limitations of the current financial arrangement, and the pressure of UK-wide economic decisions on Scotland’s balance sheet.
