BUMPER GAS AND OIL PROFITS BUOY UP ECONOMY

Spending deficit falls by £4.7bn as North Sea revenues enjoy boost

- CHRIS MCCALL

NORTH Sea oil and gas revenues soared to record levels last year in a major boost to the Scottish economy.

The annual Government Expenditure and Revenue Scotland (GERS) report published yesterday found energy sector receipts were up by £6.9billion.

The country continues to spend more on public services than it raises in revenues but the gap has shrunk over the last 12 months.

GERS is a National Statistics publication, which is prepared by Scottish Government officials independently of ministers.

It sets out revenues raised in Scotland, both from devolved and reserved taxation and public spending on behalf of Scotland.

The difference is called the net fiscal balance, often referred to as the notional "deficit". The latest report found the spending deficit dropped from £23.7billion to £19billion.

It means Scotland has a spending deficit of nine per cent, compared with five per cent for the UK as a whole.

Neil Gray, the SNP's Wellbeing Economy Secretary, said the GERS report did not reflect "the full benefits of the green economy".

But Alister Jack, the Tory Scottish Secretary, said the report was proof of how Scots "benefited hugely" from being part of a strong UK.