Kevin Hague
@kevverage
Investor/chair of a couple of Scottish businesses; chair of constitutional think tank These Islands; keen analyst of Scotland’s economic data (particularly “GERS” #fml); occasional political commentator; runner, hill walker & dog lover - views own, obv
16. Before the indyref, the SNP cited GERS figure to claim: “Scotland received 9.6 per cent of the UK’s taxation, and received 9.3 per cent of the UK’s spending” - in 2025/26 Scotland generated 8.0% of the UK’s revenues while benefiting from 9.1% of the UK’s public spending.
15. North Sea revenues (including the Energy Profits Levy in recent years) sometimes partially obscure this onshore deficit gap.
14. To summarise: higher spending (primarily) and lower revenue per head (slightly) explain the large and persistent onshore deficit gap that exists between Scotland and the UK overall
13. Despite higher income tax rates in Scotland, the gap between Scottish and UK average income tax (and NIC) revenue raised per head has widened.
12. The Energy Profits Levy - which the SNP has recently been objecting to - makes up most of the North Sea revenues attributable to Scotland.
10. Scotland performs relatively well in terms of revenue generation per head when compared with other devolved nations and most English regions.
9. Excluding North Sea revenues, Scotland’s onshore revenue generation per head lags the UK average. The inclusion of North Sea revenues shows Scotland currently generating the same level of revenue per head as the UK overall.
8. The gap in social protection (pensions and benefits) spending per head between Scotland and the UK average has been growing dramatically. Social protection spending in Scotland is now £725 per head higher than the UK average
7. Higher spending per head for Scotland occurs across almost all spending categories. Social protection (pensions and benefits) is the largest - but far from only - source of difference.
6. Scotland’s higher spending levels per head are similar to those of London and Northern Ireland.
5. The main driver of Scotland’s higher deficit is the higher levels of public spending per head from which Scotland benefits - over £2,500 p.a. more for every man, woman and child in Scotland.
4. The only thing which has materially changed the gap between Scotland’s GERS deficit and the UK’s overall has been North Sea revenues - strip those out and the deficit gap between Scotland and the UK is consistently around 5% of GDP
3. The scale of the challenge Scotland faces to match the UK’s deficit, meet the EU’s excessive deficit threshold or eliminate the deficit entirely is significant - a £15 - 25 billion challenge
2. The gap between Scotland’s deficit and the UK’s overall has continued to (slightly) widen
A quick thread on today’s #GERS figures 1. Scotland’s GERS deficit continues to be much greater than the EU’s 3% excessive deficit threshold
some journalists’ thirst for grievance is insatiable, this is egregiously bad reporting: the UK obviously can’t benefit from electricity which *isn’t generated* and Scotland doesn’t “bear the brunt” of these constraint PAYMENTS, it *benefits* from them (ffs) www.heraldscotland.com/news/2558775...
more focus group frustration: just listened to group all agreeing that in the English press “Andy Murray was always Scottish if he lost and British if he was winning” another myth that persists despite having been thoroughly debunked 🫤 www.stir.ac.uk/news/2015/11....
been watching lots of focus groups - clearly many young Scots believe we “send all our taxes to Westminster but get only a fraction back” but Scottish Government’s own National Statistics show we consistently benefit from 9.1% of UK public spending while contributing less than 8.5% to UK revenues 🤷🏻♂️
highly recommended - but be prepared for a chilling, depressing and deeply unsettling read www.ft.com/content/1377...
with the best will in the world, i refer you back to the *actual numbers* - how can you seriously seek to create a grievance out of these simple and undisputed facts: average revenue/head generated while benefitting from far higher than average spending/head?
also - just fyi - according to the Scottish Government’s own calculations Scotland was a small net fiscal contributor *to* the EU I know facts can be uncomfortable at times, but you really should engage with them if you want to be persuasive
and as for being like any other nornal independent country: I’m on record as saying Scotland could be - you’d just have to persuade Scots to have far higher taxes or much lower public spending 🤷🏻♂️ www.these-islands.co.uk/publications...