Scotland's budget gap falls, Sturgeon warns of #Brexit danger

Scotland’s large budget deficit shrank in the last financial year to its lowest since 2012 but remained far larger in percentage terms than that of the United Kingdom as a whole, Scottish government data has shown, writes Elisabeth O'Leary.

The health of Scotland’s economy, as Britain prepares to leave the European Union in March 2019, is a key issue affecting Scottish voters’ appetite for independence. Opinion polls put support for independence at about 45%.

Data showed that Scotland’s net fiscal deficit shrank to £13.4 billion in the 2017/18 tax year from £14.5bn the year before, helped by stronger North Sea oil and gas revenues.

As a percentage of gross domestic product (GDP), the deficit fell to 7.9 percent from 8.9 percent — the lowest since 2011/12 but far higher than in the United Kingdom as a whole, where public sector net borrowing was 1.9 percent of GDP in 2017/18.

Sturgeon described Brexit as a “real and present danger” for Scotland and Britain’s economy.

She said she was not opposed to the United Kingdom holding a second vote on EU membership - a cause championed by an increasing number of people opposed to Brexit.

But with a majority of voters in Scotland having already voted in the 2016 referendum on EU membership to stay in the bloc, Sturgeon said, the question for Scots now was whether they should continue to be part of a Britain heading for Brexit.

Scotland and Northern Ireland voted in the referendum to remain in the EU, while England - by far the most populous of the home nations - and Wales voted to leave.

Prime Minister May has ruled out a second vote on EU membership and says it is “not the time” for another Scottish independence vote.

Sturgeon defends higher Scottish public spending and blames deficit-reduction policies imposed by May’s Conservatives for rising income gaps across Britain.

Per capita public spending in Scotland was 1,576 pounds more than the British average, supported by taxes from other parts of Britain - proof, the Scotland minister in May’s UK government said, that the United Kingdom was working well as a structure.

“Simply put, Scotland contributed 8% of UK tax, and received more than 9% of UK spending for the benefit of families across the country,” David Mundell said.

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