MP hails Banff and Buchan's Union dividend worth over £200 million
Banff and Buchan MP David Duguid has emphasised the value to Banff and Buchan of Scotland remaining in the UK based on the Scottish Government’s latest Government Expenditure and Revenue Scotland (GERS) figures GERS figures which show that Scotland's place in the Union is worth over £200 million to Banff and Buchan.
The report provides a notional measure of the difference between what Scotland raises in taxation and what is spent on its public services and has been at the centre of the independence debate in recent years.
This year's figures put Scotland's public spending deficit at £36.3bn, which was more than double the £15.1bn recorded the previous year.
The ‘Union dividend’ (reflecting Scotland’s lower tax revenues and higher public spending) has increased to £2,210 per person for 2020/21 compared with £2,043 the previous year.
When multiplied by the approximate population of Banff and Buchan this equals slightly over £203 million.
Banff and Buchan MP David Duguid said:
"These latest figures on Scotland's public spending are again a testament to the tangible benefit of the Union to Scotland, including here in Banff and Buchan.
"The Union Dividend for my constituency alone is over £200 million!
"Last year was an economic shock around the whole world and it is clear that without the support of the combined British economy, people and businesses across Banff and Buchan and the rest of Scotland, would not have benefited from the support through the pandemic that was made available by Her Majesty’s Treasury.
“It is somewhat baffling – although not surprising – that the SNP continue their calls for breaking up the UK under these circumstances.”
Total public spending for the benefit of Scotland increased from £81.9bn in 2019-20, to £99.1bn in 2020-21.
Increased spending on the pandemic amounted to £17.2 billion – equivalent to more than £3,100 per person in Scotland.
Scotland’s notional deficit rose from £15.8 billion in 2019-20 to £36.3 billion in 2020-21. This is more than Scotland’s entire health, education, transport, housing and culture budgets for the year, which was cumulative £35.8 billion in 2020-21.
As a percentage of Scotland’s GDP the notional deficit increased from -8.8% in 2019-20 to -22.4% in 2020-21. For comparison, the UK’s deficit rose from -2.6% of GDP to -14.2% over the same period. New members of the EU are required to have a deficit less than 3% of GDP.
Public spending per person was £1,828 higher in Scotland than the UK average. This was an increase from £1,754 the previous year.
Tax revenues in Scotland were £382 per person lower than the UK average, compared with £290 lower the previous year.
The ‘Union dividend’ (reflecting Scotland’s lower tax revenues and higher public spending) was £2,210 per person compared with £2,043 the previous year.
North Sea revenues fell from £643m in 2019/20 to £414m in the last financial year.
Population of Banff and Buchan estimated to be 92,212 from Local Authority records (2017)
£203 million figure calculated by multiplying population figure by union dividend figure.