Publication - Factsheet

About Government Expenditure and Revenue Scotland

Published: 29 Oct 2019
Directorate:
Chief Economist Directorate
Part of:
Economy

Documents and contextual information relating to the Scottish Government's Government Expenditure and Revenue Scotland (GERS) publication.

About Government Expenditure and Revenue Scotland
Responses to GERS queries

Scottish Water

Q: What is the value per person of revenue raised from Scottish Water?

A: Revenue from Scottish Water within GERS is reported entirely under gross operating surplus.  Information on Scottish Water’s surplus in 2018-19 is set out in their Annual Report 2018-19, available at:

https://www.scottishwater.co.uk/en/Help-and-Resources/Document-Hub/Key-Publications/Annual-Reports​

In National Accounts, operating surplus is recorded prior to the deduction of depreciation or capital consumption, as this is included as an expenditure. As shown in the Consolidated Income Statement on page 68 and the Operating Surplus statement on page 78, Scottish Water’s gross surplus was £537.7 million in 2018-19 (calculated as operating surplus plus depreciation charges).  This is equivalent to approximately £100 per person, given Scotland’s population of 5.4 million people. Information on Scotland’s population is available at:

http://www.nrscotland.gov.uk/statistics-and-data/statistics/statistics-by-theme/population/population-estimates/mid-year-population-estimates

Scottish Water’s Annual Reports for other years are available from:

http://www.scottishwater.co.uk/about-us/publications/key-publications

Crown estates revenue

Q: What is the value attributed to Scotland per person of revenue raised from the Crown Estates?

A: Information on the Crown Estate’s revenue in 2016-17 is set out in their Annual Report 2015-16, available at:
https://www.thecrownestate.co.uk/media/1097892/integrated-annual-report-2016-17.pdf

As shown on page 1, the Crown Estate’s net revenue profit prior to depreciation was £329 million in 2016-17. In GERS Scotland is apportioned a share of this revenue in line with the Crown Estate in Scotland's share of UK gross surplus, also on page 1.  In 2016-17 this share was 3.9%, or approximately £13 million. This is equivalent to approximately £2 per person, given Scotland’s population of 5.3 million people. 

Crown Estate Annual Reports for other years are available from:
http://www.thecrownestate.co.uk/our-business/financial-information/annual-reports-archive/ 

Revenues apportioned by population

Q: What revenues are apportioned to Scotland on a population basis, and what is the value of these revenues?

A: The table below provides a description of the UK revenues of which Scotland is apportioned a population share in Government Expenditure & Revenue Scotland (GERS) 2014-15.  The value of this Scottish share is also shown.

Scottish values of revenue lines apportioned to Scotland on a population basis (£m)

Description
2011-12 2012-13 2013-14 2014-15 2015-16
Onshore revenues          
Fishing licences 1.8 1.8 1.7 1.7 1.7
Interest and dividends (net), Central Government 754.5 1320.7 1600.7 1456.1 1272.7
Interest and dividends (net), Local Government  -211.0 -52.8 -77.8 -63.7 -97.3
Interest and dividends (net), Bank of England -2.6 -729.1 -1019.5 -895.9 -711.4
Emissions trading scheme - revenue from overseas government activity 0.0 0.0 0.0 0.0 0.0
UK Revenue Accounting Adjustment 2.1 2.1 -30.0 -107.6 -98.9
Offshore revenues when apportioned on a population basis
North Sea Corporation Tax 739.5 367.5 295.2 171.4 44.4
Petroleum Revenue Tax 170.0 144.8 92.9 6.4 -46.4
Emissions trading scheme - offshore emissions 1.5 1.3 1.6 2.6 2.3

Note: The UK Revenue Accounting Adjustment reconciles the GERS UK revenue total from the ONS UK Economic Accounts 2016Q1 to the latest UK revenue total from the ONS Public Sector Finances published in July 2016.

Note that UK revenues from the Emissions Trading Scheme are not separated out by ONS.  This is estimated by the Scottish Government, as set out in Box 3.2 of GERS 2012-13:
http://www.gov.scot/Publications/2014/03/7888/5

National Lottery

Q: What is the value of National Lottery revenue and expenditure allocated to Scotland?  How are these calculated?

A:

Revenue

Scotland is apportioned a share of UK revenue from the National Lottery. This is the revenue paid to the National Lottery Distribution Fund by the lottery operator, which is to be spent for good causes. Scotland’s share of this revenue is estimated based on its share of household spending on gambling, taken from the Office for National Statistics publication Family Spending:

http://www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances/incomeandwealth/compendium/familyspending/2015

 (Reference Table A35)

Estimated Scottish National Lottery revenue (£m)

 
2010-11 2011-12 2012-13 2013-14 2014-15
National Lottery revenue  153 179 177 181 179

Expenditure

Scotland’s share of National Lottery grants to good causes is estimated by the Department for Culture, Media, and Sport, and is available from the GERS 2014-15 expenditure database

The value is shown in the table below:

Estimated Scottish National Lottery expenditure (£m)

  2010-11 2011-12 2012-13 2013-14 2014-15
National Lottery expenditure 130 162 167 51

186

BBC

Q: What is the value of BBC revenue and expenditure allocated to Scotland? How are these calculated?

A: The tables below set out estimated revenue and expenditure associated with the BBC.

Note that the following figures exclude revenue and expenditure associated with the BBC’s commercial services, associated with e.g. overseas sales of BBC programmes. This part of the BBC is treated separately within the UK Public Sector Finances. As it is viewed as a self-financing body, only its net position is included, with its revenues and expenditure not reported separately.

(a) Revenue

GERS includes TV licences paid by households within the revenue category ‘Other taxes, royalties, and adjustments’. This is a smaller figure than the licence fee income as reported by the BBC in their annual accounts, as the BBC includes income from the Department for Work and Pension (DWP), which pays the TV licences of over 75s. For reference, both figures are shown below.

Estimated BBC licence fee income from Scottish households (£m)

 
2010-11 2011-12 2012-13 2013-14 2014-15
From households (source: GERS) 274 278 275 278 279
From DWP (source: DWP) 48 49 49 49 49
Total estimated BBC revenue from Scottish households 322 327 325 327 328

As TV licences are paid by households rather than individuals, Scotland’s share of TV licences from under 75s is estimated based on its share of UK households, available from the Department for Communities and Local Government:

https://www.gov.uk/government/statistical-data-sets/live-tables-on-household-projections (Live Table 401)

Scotland’s share of TV licences from over 75s is taken from DWP benefit expenditure tables:

https://www.gov.uk/government/statistics/benefit-expenditure-and-caseload-tables-2015

(b) Expenditure

Scotland’s share of BBC expenditure within GERS is  available from the GERS 2014-15 expenditure database and is shown in the table below. This is apportioned to Scotland on a population basis as it aims to represent the spending by the BBC for the benefit of residents of Scotland. This does not represent total BBC spending in Scotland.

Estimated BBC expenditure for Scotland (£m)

  2010-11 2011-12 2012-13 2013-14 2014-15
BBC expenditure for Scotland 338 299 300 305 324

Transport for London

Q: How much of the fare revenue returned to HM Treasury by Transport for London each year is included in Scottish revenue?

A: No revenue raised by Transport for London is included within the Scottish revenue figures in GERS.

HMRC tax categories

Q: What is the GERS estimate of Scottish revenue for HMRC tax categories?

A: The table below provides the GERS revenue estimates for the years 2011-12 to 2015-16, under the categories used by HMRC.  A description of how the HMRC categories match the GERS categories is provided if they are different.

There are a number of differences between the GERS and HMRC estimates, including:

  • HMRC receipts are on a cash basis; GERS receipts are on an accruals basis.
  • GERS includes Scottish Land and Buildings Transactions Tax against Stamp Duty Land Tax and Scottish Landfill Tax against Landfill Tax.
  • HMRC includes estimates for Customs Duties.  These are collected by HMRC on behalf of the EU.  They are not included in GERS revenue estimates.
  • HMRC estimate Scotland’s geographical share of offshore corporation tax and petroleum revenue tax (PRT) separately.  The GERS figures are based on Scotland’s share of total North Sea revenue, with this single estimate share applied to both offshore corporation tax and PRT.  The individual GERS estimates of corporation tax and PRT are therefore less meaningful.

GERS revenues by HMRC category (Scotland, £m)

  2011-12 2012-13 2013-14 2014-15 2015-16 Notes on presentation in GERS
Total Paid Over n/a n/a n/a n/a n/a  
Total HMRC receipts excluding customs duties (geographic) 45,927 42,222 42,562 41,965 41,857  
Total HMRC receipts excluding customs duties (population) 37,277 37,499 39,025 40,421 41,874  
Total Income Tax 11,127 11,022 11,277 11,735 12,151  
Of which: PAYE Income Tax n/a n/a n/a n/a n/a  
Of which: SA Income Tax n/a n/a n/a n/a n/a  
Capital Gains Tax 277 321 240 293 375  
NICs 8,271 8,588 8,826 9,067 9,323  
VAT 8,215 8,456 9,141 9,512 9,964 Net VAT receipts only, part of VAT
Corporation Tax (Non-North Sea) 2,430 2,557 2,571 2,920 3,130  
Offshore corporation tax (geographic) 7,770 3,759 2,976 1,660 431 Part of North Sea revenue (geographical share)
Offshore corporation tax (population) 740 368 295 171 44 Part of North Sea revenue (population share)
Bank Levy 120 110 180 221 255 Part of other taxes, royalties, and adjustments
Bank payroll tax 0 0 0 0 0 Part of other taxes on income and wealth
Petroleum Revenue Tax (geographic) 1,790 1,476 949 62 -450 Part of North Sea revenue (geographical share)
Petroleum Revenue Tax (population) 170 145 93 6 -46 Part of North Sea revenue (population share)
Fuel duties 2,275 2,257 2,289 2,314 2,354  
Inheritance tax 170 175 210 229 278  
Shares 236 181 268 252 293 Part of stamp duties
Stamp Duty Land Tax 275 283 389 478 416 Part of stamp duties
Annual Tax on Enveloped Dwellings 0 0 4 5 7 Part of stamp duties
Tobacco duties 1,208 1,278 1,242 1,211 1,189  
Spirits duties 369 369 373 373 391 Part of alcohol duties
Beer duties 255 226 222 224 220 Part of alcohol duties
Wines duties 314 322 350 346 366 Part of alcohol duties
Cider duties 30 28 26 19 19 Part of alcohol duties
Betting & Gaming 122 122 173 185 225  
Air Passenger Duty 228 244 270 290 275  
Insurance Premium Tax 204 202 211 206 258  
Landfill Tax 131 139 150 147 147  
Climate Change Levy 63 61 117 161 186  
Aggregates Levy 48 43 44 55 53  
Swiss Capital Tax 0 0 63 0 0 Part of other taxes on income and wealth
Misc 0 0 0 0 0  
Customs Duties n/a n/a n/a n/a n/a  
             
Child and Working Tax Credits 2,238 2,219 2,160 2,096 2,018  
Corporation Tax Credits 96 99 109 149 170  
Child Benefit Payments 930 921 862 863 853  

 

For comparison, UK revenues on the same basis are provided in the table below.

 

GERS revenues by HMRC category (UK, £m)

  2011-12 2012-13 2013-14 2014-15 2015-16 Notes on presentation in GERS
Total Paid Over n/a n/a n/a n/a n/a  
Total HMRC receipts excluding customs duties (geographic) 479,859 476,555 495,086 512,086 530,225  
Total HMRC receipts excluding customs duties (population) 479,859 476,555 495,086 512,086 530,225  
Total Income Tax 151,262 150,713 156,009 162,342 168,094  
Of which: PAYE Income Tax n/a n/a n/a n/a n/a  
Of which: SA Income Tax n/a n/a n/a n/a n/a  
Capital Gains Tax 4,336 3,926 3,907 5,559 7,107  
NICs 101,597 104,483 107,306 110,260 113,440  
VAT 98,172 100,769 106,521 111,244 116,388 Net VAT receipts only, part of VAT
Corporation Tax (Non-North Sea) 42,127 39,452 39,272 42,060 43,426  
Offshore corporation tax (geographic) 8,840 4,412 3,556 2,073 538 Part of North Sea revenue (geographical share)
Offshore corporation tax (population) 8,840 4,412 3,556 2,073 538 Part of North Sea revenue (population share)
Bank Levy 1,835 1,617 2,297 2,819 3,371 Part of other taxes, royalties, and adjustments
Bank payroll tax 0 0 0 0 0 Part of other taxes on income and wealth
Petroleum Revenue Tax (geographic) 2,032 1,737 1,118 77 -562 Part of North Sea revenue (geographical share)
Petroleum Revenue Tax (population) 2,032 1,737 1,118 77 -562 Part of North Sea revenue (population share)
Fuel duties 26,798 26,571 26,881 27,155 27,621  
Inheritance tax 2,955 3,150 3,541 3,879 4,720  
Shares 2,794 2,233 3,108 2,925 3,393 Part of stamp duties
Stamp Duty Land Tax 6,125 6,906 9,272 10,738 11,096 Part of stamp duties
Annual Tax on Enveloped Dwellings 0 0 101 116 173 Part of stamp duties
Tobacco duties 9,878 9,590 9,556 9,251 9,106  
Spirits duties 2,920 2,966 2,941 3,001 3,134 Part of alcohol duties
Beer duties 3,504 3,324 3,319 3,332 3,278 Part of alcohol duties
Wines duties 3,423 3,525 3,712 3,798 3,991 Part of alcohol duties
Cider duties 333 324 336 318 299 Part of alcohol duties
Betting & Gaming 1,221 1,228 1,645 1,776 2,153  
Air Passenger Duty 2,637 2,818 3,003 3,205 3,040  
Insurance Premium Tax 3,002 3,033 3,018 2,973 3,714  
Landfill Tax 1,075 1,116 1,179 1,125 1,044  
Climate Change Levy 678 663 1,200 1,626 1,875  
Aggregates Levy 283 261 294 357 348  
Swiss Capital Tax 0 0 876 0 0 Part of other taxes on income and wealth
Misc 0 0 0 0 0  
Customs Duties n/a n/a n/a n/a n/a  
  0 0 0 0 0  
Child and Working Tax Credits 29,976 29,761 29,394 29,187 28,542  
Corporation Tax Credits 1,312 1,361 1,507 2,036 2,323  
Child Benefit Payments 12,209 12,185 11,496 11,595 11,681  

Whisky export duty

Q: What is the value of revenue collected from Whisky Export Duty allocated to Scotland?

A: Exports, including exports of whisky, do not attract UK duty. Therefore, no 'whisky export duty' revenue is allocated to Scotland in GERS.

Office of Budget Responsbility (OBR) receipts categories

Q: What is the GERS estimate of Scottish revenue for OBR receipt categories?

A: The table below provides the GERS revenue estimates for Scotland and the UK against the receipts categories used by the Office of Budget Responsibility (OBR). A description of how the OBR categories match the GERS categories is provided if they are different. For reasons of space, figures are provided only for the most recent year. Figures for earlier years are available on request.

Note that the OBR report offshore corporation tax and petroleum revenue tax (PRT) separately.  The GERS figures are based on Scotland’s share of total North Sea revenue, with this single estimated share applied to both offshore corporation tax and PRT.  The individual GERS estimates of corporation tax and PRT are therefore less meaningful.

GERS revenues by OBR category (£ million)

Receipt Scotland UK Notes on presentation
Income tax (gross of tax credits) 12,248 169,327 Different presentation from GERS. Includes some small taxes on income and tax credits which in GERS are reported as 'Other taxes on income and wealth'
National insurance contributions 9,323 113,440  
Value added tax 9,964 116,388 Different presentation from GERS. Excludes VAT refunds, reported separately below.
Corporation tax - onshore 3,190 43,704 Different presentation from GERS. Includes some small corporate taxes and tax credits which in GERS are reported as 'Other taxes on income and wealth'. Also include the Bank Surchage (see below). See also note 1
 offshore: population share 44 538 See note 1
 offshore: geographical share 431 538 See note 1
Petroleum revenue tax - population share -46 -562  
  geographical share -450 -562  
Fuel duties 2,354 27,621  
Business rates 1,916 26,798 See note 2
Council tax 2,122 29,122  
VAT refunds 1,264 14,026  
Capital gains tax 375 7,107  
Inheritance tax 278 4,720  
Stamp duty land tax 7 10,853  
Stamp taxes on shares 293 3,393  
Tobacco duties 1,189 9,106  
Spirits duties 391 3,134  
Wine duties 366 3,991  
Beer and cider duties 239 3,577  
Air passenger duty 275 3,040  
Insurance premium tax 258 3,714  
Climate change levy 186 1,875  
Other HMRC taxes 342 4,010 See note 3
Vehicle excise duties 456 5,922  
Bank levy 255 3,371  
Bank surcharge - - Not held separately in GERS. Reported as part of corporation tax.
Licence fee receipts 276 3,115  
Environmental levies 510 4,563  
EU ETS auction receipts - onshore 47 473  
offshore: population share 2 28 Estimated receipts from offshore operators
offshore: geographical share 21 28 Estimated receipts from offshore operators
Scottish taxes 563 563  
Other taxes 461 5,685  
National Accounts taxes - onshore 49,149 622,638  
  incl population share North Sea 49,149 622,642  
  incl geographical share North Sea 49,151 622,642  
Less own resources contribution to EU - - See note 3
Interest and dividends 382 6,202  
Gross operating surplus 3,802 44,761 See note 4
Other receipts - onshore 356 4,030  
offshore: population share 6 72 Licence fees relating to North Sea
offshore: geographical share 58 72 Licence fees relating to North Sea
Current receipts - onshore 53,689 677,631  
 incl population share North Sea 53,695 677,707  
 incl geographical share North Sea 53,748 677,707  
Memo - oil and gas revenue - population share 6 76 Slightly different presentation from OBR. Includes licence fees relating to North Sea and estimated emissions trading scheme revenue from oil and gas platforms
geographical share 60 76

Numbers may not sum due to rounding

Notes:

1. Corporation tax. GERS is consistent with the UK Public Sector Finances published on 21 July 2016. On 21 February 2017 ONS changed the reporting standard for UK corporation tax from cash to accruals. This change would increase revenue for both the UK and Scotland compared to that published in GERS.
2. Uses the same presentation as in GERS. This shows business rates after deduction of rates paid by LAs. In contrast, the OBR report gross business rates, and then net off these payments within the 'other receipts' line (see OBR Supplementary Fiscal Table 2.3). As such, the figure here is lower than that reported by the OBR.
3. Customs duties and own resource contributions to the EU. GERS does not include some revenue which is collected on behalf of or directly paid over to the EU. This includes Customs Duties and the Own Resource Contribution to the EU, which are both approximately the same size. With the OBR presentation, these revenues are netted off in different places. Customs Duties are included in the 'Other HMRC taxes' line, and then netted off within the 'Other taxes' line. The Own Resource Contribution is included as a revenue in the 'Other taxes' line and then netted off in the 'Less own resources contribution to EU' line. More detail is set out in the OBR's Fiscal Supplementary Table 2.2, which provides a breakdown of the 'Other taxes' line for the UK.
4. Registered social landlords (housing associations). GERS is consistent with the UK Public Sector Finances published on 21 July 2016. On 21 February 2017 the ONS implemented the decision to include registered social landlords (commonly referred to as housing associations) in Scotland, Wales, and Northern Ireland within the UK Public Sector Finances. This would increase the revenue (primarily gross operating surplus) for both the UK and Scotland compared to that published in GERS.

Non-identifiable spending

Non-identifiable expenditure is a term used in HM Treasury's Country and Regional Analysis (CRA) publication to refer to spending that cannot be allocated as benefitting a particular region. In GERS, the term is used more widely to include spending which is identified as benefiting people that do not live in the UK. An example of this spending would be state pensions paid to UK citizens who now live abroad.

The methodology for apportioning non-identifiable expenditure to Scotland in GERS is set out in the GERS expenditure methodology paper, available at:

http://www.gov.scot/Topics/Statistics/Browse/Economy/GERS/Methodology

Since non-identifiable spending is a CRA measure, and the CRA for the latest year is not available at the time of publication, GERS does not have a breakdown of spending into identifiable and non-identifiable for the latest year. A breakdown of identifiable and non-identifiable spending for Scotland for earlier years is available in the Supplementary Expenditure Database published alongside GERS.


Contact

The views of users are highly valued and the Scottish Government is always keen to hear from as many users as possible.  If you have any queries or comments on GERS please address them to:

Post:
Government Expenditure and Revenue Scotland (GERS)
Office of the Chief Economic Adviser
Scottish Government
St Andrew's House
Regent Road
Edinburgh
EH1 3DG

Email: economic.statistics@gov.scot

Telephone: 0131 244 2825