CBI Scotland responds to latest GERS figures

Tracy Black, CBI Scotland Director, said:

“An increase in tax revenues, including onshore, is clearly welcome however Scotland still lags some way behind the whole of the UK when you look at the deficit as a percentage of GDP. Even without considering the impact of coronavirus it’s clear that Scotland continues to spend significantly more than it raises in tax.

“With a thriving private sector key to delivering the revenues needed to fund public spending, the impact of coronavirus has clearly put Scotland’s public finances under considerable pressure. In spite of an acceleration in spending to combat the impact of the pandemic, many Scottish jobs and businesses have been lost – with others remaining on the brink – putting future tax revenues at risk.

“With only the tip of the coronavirus iceberg captured by the latest statistics, it’s clear that further pain is in the post for the Scottish economy. That’s why we need to do everything we can now to secure an effective and sustainable recovery that focusses on job creation, skills and training, kickstarting demand and boosting competitiveness.”