In 2023-24, £88.5 billion in tax receipts was raised in Scotland through devolved and reserved taxation, with £111bn in public spending for Scotland. That works out to 8.1% of UK revenue and 9.1% of spending.

The figures also reveal that the ‘notional deficit’ in Scotland grew to around £22bn, or 10.4% of GDP, more than double the UK deficit of 4.5% of GDP.

The UK government is committed to retaining the Barnett Formula and funding arrangements agreed with the Scottish Government in the Fiscal Framework, which enables this higher spending for Scotland, and working in partnership with the Scottish Government to drive economic growth in Scotland.

UK Government Minister for Scotland Kirsty McNeill said: “These figures underline the collective economic strength of the United Kingdom.

“By pooling and sharing resources across the UK, Scots benefit by £2,417 more per head in public spending than the UK average. That means more money for schools and hospitals, if the Scottish Parliament chooses to invest in those areas.

“Ensuring economic stability and then delivering economic growth are two of the driving missions of the UK Government. We have reset relationships with partners across the UK, and want to work closely with the Scottish Government to produce better results for people in Scotland.”

Commenting on EY Item Club and today’s GERS figures, Sandy Begbie CBE, Chief Executive, Scottish Financial Enterprise, said: “EY Item Club has upgraded its Scottish growth forecast to 0.9% this year, highlighting growing consumer confidence, better economic conditions and a more stable outlook - relatively speaking - for business.

“While the improved outlook is to be welcomed, it’s clear that we aren’t yet seeing the levels of consistent, sustainable growth required to make a meaningful impact on the country’s economic health and living standards.

“This is reinforced by today’s annual Government Expenditure and Revenue Scotland (GERS) report, which show Scotland’s spending deficit increased by £3.6bn in 2023.

“SFE is working constructively with both the Scottish and UK governments to help Scotland capitalise on the positive momentum we are seeing to drive the significantly higher levels of growth needed to better fund our public services, create high value jobs and raise living standards.

“We are encouraging both the Scottish and UK governments to demonstrate good government, foster a thriving business environment, champion green and sustainable finance, and invest in our people and their skills.

“Policy alignment is key, and we want to see government remove barriers to growth, empowering industry and unlocking our full potential.”