GERS: Westminster charges Scotland billions of pounds in service costs

Westminster charges Scotland billions of pounds in service costs

by Michael Gray, Business for Scotland (12 March 2014)

The latest Government figures on Scotland’s economy contain billions in service charges for activities in the rest of the UK. As pointed out by Douglas Fraser, BBC Scotland Business and Economy Editor, this raises a challenge over measuring Scotland’s economy.

Despite claiming to present Scotland’s financial position, the Government Expenditure and Revenue Scotland figures include higher costs for defence, debt and administrative services that should not apply to Scotland.

The extra costs for services in the rest of the UK make Scotland’s finances appear worse than they actually are by billions of pounds every year. In the last 5 years these sectors cost Scotland £35 billion; yet Scotland did not receive or need £35 billion in services. Only in an independent Scotland will Scotland have full control over its own financial decisions and spending.

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