Revenue gap breakdown
Revenue gap detail (1): streams as stacked bars
This chart shows the composition of the revenue gap between Scotland and the UK average. The default view excludes North Sea revenue.
The net shortfall in revenue per head is a function of lower revenue generation mostly relating to Scotland's lower taxable economic base (income tax, NIC, CGT, IHT, corporation tax) and the impact of council tax freezes in Scotland, only partially offset by higher capital consumption accounting adjustments, the gross operating surplus of Scottish Water, survey based estimates of VAT, tobacco and alcohol duties paid per head in Scotland and higher business rates. The following insights delve into each of these areas in more detail.