Scottish revenue at £98bn as notional deficit falls

John Swinney

The revenue per person in Scotland at £17,718 was similar to the UK average of £17,720 in the same year, when revenue from the North Sea is included.

A spokesperson said: “The largest increases in revenue in Scotland in 2025-26 were national insurance contributions (+£2.4 billion) and income tax receipts - + £1.5 billion. This follows the decision by the UK government to increase the rate of employer’s national insurance contributions from April 2025, and the Scottish government’s decision to freeze the higher, additional, and top rate of Scottish Income Tax.

“It also reflects the continuing effects of inflation and strong nominal earnings growth.”

The figures have been included in its annual Government Expenditure and Revenue Scotland (GERS) report, which estimates the cost of public services provided for Scotland and the revenue raised in Scotland.

They added: “Scotland’s notional net fiscal balance was -10.9 per cent of GDP compared with -4.2 per cent for the UK. This is an improvement of 0.6 percentage points in Scotland compared with a 1.0 percentage point improvement for the UK.

“In cash terms, the net fiscal balance in 2025-26 was -£25.3 bn, improving over the year by £0.6 bn. This improvement in 2025-26 reflects that revenue grew by £6.3 bn (6.9 per cent), while expenditure grew at a slower pace by £5.7 bn (4.8 per cent).”

The difference between revenue raised in Scotland compared with the expenditure on behalf of the people of Scotland is reflected in the net fiscal balance. Total devolved revenues in Scotland raised £27.8bn in 2025-26, an annual increase of £2.1bn. The revenues include Council Tax, Non-Domestic Rates, Land and Building Transaction Tax, Scottish Landfill Tax and Scottish Income Tax.

Spending by the Scottish and UK government on behalf of the people was £123.6bn in 2025-26, an increase of £5.7bn over the year, but spending per person in Scotland was £22,281 compared to £19,561 in the UK, meaning Scotland spent £2,720 more per person than in the UK.

Social protection and health saw the largest increase in total spending in Scotland at £2.1bn and £1.5bn.