Scotland's revenues reached a record high of £98.3 billion in 2025-26, but public spending of £123.6 billion left a deficit of £25.3 billion, according to Scottish Government figures.
The Government Expenditure and Revenue Scotland (Gers) report showed revenues increased by £6.3 billion (6.9%) from the previous year, driven by UK Government changes to employers' national insurance contributions and a Scottish Government freeze on higher income tax bands.
Revenue and spending details
The UK Government's hike in employers' national insurance raised £2.4 billion, while the Scottish Government's decision to freeze higher income tax bands netted £1.5 billion. However, North Sea revenues continued to decline, falling from almost £5.5 billion in 2023-24 to less than £4.5 billion in 2024-25 and around £3.9 billion in 2025-26.
Public spending in Scotland totalled £123.6 billion in 2025-26, an increase of £5.7 billion (4.8%) compared with the previous year. The net fiscal balance was minus £25.3 billion, an improvement of £0.6 billion from 2024-25.
Deficit and comparisons
The deficit was equivalent to minus 10.9% of Scotland's GDP, compared with a UK deficit of minus 4.2% of GDP. Spending per person in Scotland was £22,281, which is £2,720 higher than the UK average of £19,561.
The report noted: "Overall, spending in 2025-26 grew slightly faster than the economy," with spending as a share of GDP increasing to 53.1%. It added: "Public spending remains historically high, as a percentage of GDP, almost nine percentage points higher than pre-pandemic."
Political reactions
Scottish Secretary Douglas Alexander said: "These statistics clearly demonstrate the value to people in Scotland of being part of a strong United Kingdom." He added that pooling resources means "£2,720 more per person compared to the UK average, which the Scottish Government can spend on vital services like schools, hospitals and transport."
Deputy First Minister Jenny Gilruth noted that "total and devolved revenues grew faster than spending," showing "in the areas where our Government has control, we are delivering sustainable finances." She also said the Gers data "provides notional estimates for Scotland's deficit as part of the UK," and that with independence, Scotland could "chart a different path."
