Meeting of the Parliament 11 March 2015
I will look at the rounded position in a second.
Secondly, the report confirms that the overall deficit in Scotland is reducing. From 2012-13 to 2013-14, the net fiscal balance fell from 9.7 per cent of gross domestic product to 8.1 per cent, despite lower oil revenues because of high levels of capital investment. That shows our continued economic strength.
Thirdly, the report shows for the first time the position of Scotland compared with other parts of the United Kingdom. Scotland pays more in revenues than anywhere except London, the south-east and the east of England.
Fourthly—this addresses the issue that Jackie Baillie raised—the report shows that in some years we have a stronger current budget balance than the UK as a whole and in some years it is lower and weaker. Scotland has been in a stronger position in two of the past five years—2010-11 and 2011-12. In three of the past six years, Scotland has been in a stronger position on balance than the rest of the United Kingdom. It is important to look at the pattern of those figures in a number of years and not at just one particular year.
The figures show that the fundamentals of our economy are strong. Scotland is, and continues to be, a wealthy country.
However, “Government Expenditure and Revenue Scotland” does not show what the position would be like if we could invest from the relatively stronger financial position that we have had in previous years to generate growth or reduce the debt, such as the £4.5 billion relative surplus over the United Kingdom in 2008-09 and the £1.6 billion relative surplus in 2011-12. Jackie Baillie is absolutely right to say that it is important to look at the years when Scotland has had a stronger financial position than the rest of the United Kingdom; we should not concentrate just on the issues that the Labour Party tries to raise out of “Government Expenditure and Revenue Scotland” for 2012-13.