Explaining the fiscal gap
Fiscal gap: the fiscal transfer explained
The deficit difference per head between Scotland and the UK results from the combination of two other differences
- the difference between spending per head for Scotland and UK as whole (the red line)
- the difference between revenue generated per head by Scotland and the UK as a whole
- the green line is onshore revenue difference only
- the black line includes the impact of North Sea revenue
Excluding North Sea revenues exposes how consistent the onshore deficit gap has been over the last 25 years; including North Sea revenues shows how these have partially reduced that deficit gap.