SNP hails record North Sea tax revenue despite threat to block new oil and gas

Rishi Sunak argued that the government's policy of «maximizing exploitation» of developments in the North Sea is compatible with zero balance. PA

But utility bills in Scotland rose by 9.5% to £106.6bn, leading to a budget deficit of 9% of GDP. This is almost double the UK-wide rate of 5.2% and more than any EU member state's deficit.

Tax revenue per person in Scotland was £696 higher than the UK average, thanks to North Sea oil. and gas, but government spending was £2,217 more per person. Given the disparity in spending and income, the Tories said the Scottish «union dividend» was £1,521 per person last year.

Ms Smith said: “These annual figures once again highlight the benefits that Scots enjoy from being part of a strong United Kingdom. The numbers also fully confirm the need for our oil and gas sector to continue to play a key role in the Scottish economy for years to come. This has helped Scotland improve its revenues.

«That's why it's surprising that all other political parties, including the SNP-Green coalition and Keir Starmer's Labor party, have turned their backs on the industry.»

The Institute for Financial Studies (IFS) warned. that the gap between the deficit in the UK and Scotland will widen again next year if oil and gas prices fall as predicted.

David Phillips, deputy director of the think tank, said: “To avoid further spending cuts or With taxes set to rise more than in the rest of the UK in the coming decades, an independent Scotland will need a steady boost in economic growth.

“It is certainly possible – indeed, during the 2000s, employment, income and economic growth in Scotland outpaced that of the UK as a whole. But the decline in North Sea oil and gas production and the associated onshore economic activity – already visible since the 2014 referendum – will create some nasty headwinds.”

Mr Gray said: “I am pleased that Scotland finances are improving faster than the UK as a whole, thanks to Scotland's progressive approach to income tax and a vibrant energy sector.

“While record revenues from the North Sea show how much the UK continues to benefit from natural wealth Scotland, these statistics do not capture the full benefits of a green economy, with hundreds of millions of pounds of revenue yet to be generated.”

But Neil Hanvey, Westminster leader of Alex Salmond's Alba party, said the figures show that oil and gas «may continue to be the engine of the first years of independent Scotland» and the Nationalists would be «reckless» if they were ignored.