Scotland’s public spending exceeded revenue by £26.2 billion in 2024–25, an increase of £5.1 billion on the previous year, according to the latest Government Expenditure and Revenue Scotland (GERS) report.
The figures show the country’s net fiscal deficit equated to 11.6% of GDP—more than double the UK-wide deficit of 5.1%. Revenue rose by 1.5% to £91.4 billion, while public spending increased to £117.6 billion, driven in part by historically high expenditure levels.
The Scottish Government attributed the widening deficit to falling North Sea revenues and slower growth in non-North Sea income compared to the UK as a whole. Spending, meanwhile, grew more quickly in Scotland than across the UK.
Scottish Secretary Ian Murray said the figures underlined the “collective economic strength” of the United Kingdom, pointing to public spending in Scotland being £2,669 higher per person than the UK average. “This means more money for schools, hospitals and policing,” he said, adding that people “will rightly expect to see better outcomes” for the higher spending levels.
Finance Secretary Shona Robison defended the Scottish Government’s fiscal position, highlighting that devolved revenues had grown faster than devolved expenditure for four consecutive years and that Scotland ranked third in the UK for revenue per person. She also argued the GERS data reflected the current constitutional arrangements rather than an independent Scotland’s finances.
Robison pointed to the impact of Brexit, which she said had reduced revenues by £2.3 billion, and noted that UK defence spending figures allocated to Scotland were higher than the amount actually spent with Scottish industry.
Business leaders stressed the need for economic growth to underpin stronger public finances. Michelle Ferguson, director at CBI Scotland, called for both the Scottish and UK governments to “back business through this difficult period” by prioritising growth and providing clarity on regulatory reforms.
The GERS report also shows that oil price volatility and reduced extraction present ongoing challenges for Scotland’s fiscal outlook, with ministers reiterating their commitment to a “just transition” for the oil and gas sector in line with climate targets.
