Annex A: Supplementary Tables
This section presents supplementary tables on public sector revenue and expenditure in Scotland.
Table A.1 below shows the population figures used in calculating per head estimates in GERS.
Table A.1: Financial Year Population Estimates (thousands)
|As % of UK total||8.3%||8.3%||8.3%||8.2%||8.2%|
Note: Financial year estimates are calculated as the weighted average of the relevant mid-year estimates. I.e., the 2014-15 population is estimated as three-quarters of the 2014 population plus one quarter of the 2015 population.
Table A.2 below shows the relationship between revenue, current expenditure, and the current budget balance, and then the transition from the current budget balance to the net fiscal balance.
Table A.2: Current and Capital Budgets: Scotland
|Excluding North Sea revenue||48,912||50,805||52,640||54,446||57,743|
|Including North Sea revenue (population share)||49,414||51,178||52,780||54,439||57,750|
|Including North Sea revenue (geographical share)||53,556||54,252||54,014||54,501||57,952|
|Balance on current budget (surplus is positive, deficit is negative)|
|Excluding North Sea revenue||-14,796||-13,792||-12,989||-11,983||-9,776|
|Including North Sea revenue (population share)||-14,295||-13,419||-12,849||-11,990||-9,769|
|Including North Sea revenue (geographical share)||-10,153||-10,345||-11,615||-11,927||-9,568|
|Net Fiscal Balance (surplus is positive, deficit is negative)|
|Excluding North Sea revenue||-19,181||-16,776||-15,847||-14,602||-13,465|
|Including North Sea revenue (population share)||-18,680||-16,403||-15,707||-14,609||-13,458|
|Including North Sea revenue (geographical share)||-14,538||-13,329||-14,473||-14,546||-13,257|
Table A.3 below provides the financial year GDP estimates used in GERS.
Table A.3: Scottish GDP including and excluding North Sea GDP
|Excluding North Sea and share of UK extra-regio||131,466||137,889||144,000||145,650||150,025|
|Including North Sea (population share)||133,388||139,827||145,454||146,824||151,127|
|Including North Sea (geographical share)||149,303||155,765||157,063||155,632||159,389|
Source: Quarterly National Accounts Scotland,
Note: Scottish GDP including a geographical share of the North Sea also includes a population share of UK overseas public administration and defence activity. Table E in Quarterly National Accounts Scotland provides a more detailed breakdown.
General Government estimates
The headline GERS figures cover the whole of the public sector. As such, they include revenue and expenditure associated with public corporations such as Scottish Water and the Bank of England. They are on a financial year basis.
When conducting international comparisons, bodies such as the European Commission and the International Monetary Fund ( IMF) present figures on a calendar year basis and covering only general government; i.e., excluding public corporations. In order to help comparisons with such figures, the table below presents the GERS results on this basis. As revenue and expenditure are primarily estimated on a financial year and public sector basis, the calendar year estimates below are illustrative and have been derived by apportioning the main GERS estimates.
Table A.4: Calendar year general government estimates: Scotland and UK
|Non-North Sea revenue||46,519||49,996||51,010||53,003||55,781|
|North Sea revenue (per person share)||47,063||50,402||51,233||53,007||55,752|
|North Sea revenue (geographical share)||51,582||53,726||53,105||53,168||55,658|
|Net Fiscal Balance|
|Excluding North Sea revenue||-21,248||-16,510||-16,715||-15,382||-14,559|
|Including North Sea revenue (per capita share)||-20,705||-16,104||-16,491||-15,377||-14,588|
|Including North Sea revenue (geographical share)||-16,186||-12,780||-14,620||-15,217||-14,682|
|As % of GDP|
|Excluding North Sea revenue||-16.3%||-12.1%||-11.7%||-10.6%||-9.8%|
|Including North Sea revenue (per capita share)||-15.7%||-11.7%||-11.4%||-10.5%||-9.7%|
|Including North Sea revenue (geographical share)||-10.9%||-8.3%||-9.2%||-9.8%||-9.3%|
Note: As figures above are on a calendar year basis, the North Sea revenue figures differ from those shown in Chapter 2. They are consistent with those shown in Table J of Quarterly National Accounts Scotland 2017Q1 ( http://www.gov.scot/topics/statistics/browse/economy/QNA2017Q1)
A number of the revenues in GERS are based on survey estimates. As such, they have an associated statistical uncertainty. The table below presents the 95% confidence intervals associated with these revenues. Other revenues are based on administrative data, or modelled data for which confidence intervals are not available. Estimates are not presented for these revenues. Expenditure is primarily based on administrative data, and therefore confidence intervals are not presented for expenditure.
Although tobacco duties and alcohol duties are both based on the Living Costs and Food Survey, the confidence interval for alcohol is larger. This is because the methodology for calculating alcohol duties uses more disaggregate survey data to reflect the different levels of duty, and revenue, received from different types of alcohol. This lower level survey data has a correspondingly larger uncertainty.
Table A.5: Confidence intervals around survey based apportionments: Scotland
|Central estimate||95% lower bound||95% upper bound||Range||Range (%)|
|National insurance contributions||10,367||10,190||10,543||+/-176||+/-1.7%|
|Betting and gaming and duties||223||220||226||+/-3||+/-1.4%|
|Insurance premium tax||330||324||337||+/-7||+/-2.0%|
|Total survey based apportionments||36,011||35,282||36,740||+/-729||+/-2.0%|
Amendments to the Country and Regional Analysis database
A number of significant improvements have been made to the HM Treasury Country and Regional Analysis ( CRA) database in recent years to apportion expenditure more accurately to countries and regions of the UK. While many anomalies in previous editions of the CRA have been addressed and are now reflected in both CRA 2016 and this GERS report, a small number of supplementary amendments to the CRA 2016 dataset are made in producing GERS. The aim of these refinements is to ensure that the public sector expenditure figure for Scotland captures as accurately as possible expenditure for the benefit of Scottish residents.
The amendments made to the CRA in producing this edition of GERS are shown in Table A.6. They are discussed in the detailed expenditure methodology paper available at http://www.gov.scot/Topics/Statistics/Browse/Economy/GERS/Methodology.
A new amendment is made to the CRA in GERS 2016-17, relating to Network Rail expenditure. Through discussions with HM Treasury and the Department for Transport, it has been identified that Network Rail spending for Scotland is being underestimated in the CRA for 2015-16, following the incorporation of Network Rail into central government. An upwards adjustment is therefore made to the Scottish figures in GERS, to bring total spend into line with figures reported for Scotland by the Office of Road and Rail. 
As the CRA for 2016-17 is not yet published, there are no formal amendments to individual spending lines in 2016-17. The 2015-16 adjustments are in effect carried forward into 2016‑17, adjusted for the spending of the responsible department. Further detail is provided in the expenditure methodology note.
In addition to the amendments to the CRA, there are amendments to the estimates of spending in 2016-17 from those published in PESA. This is to bring the increase in Scottish local government capital spending in line with the provisional outturn estimates published in July 2017.  These adjustments are additional to those that would be carried forward from the CRA.
Table A.6: Amendments to Estimates of Total Public Sector Expenditure on Services from CRA 2016
|Amendments from the CRA|
|Other minor revisions||-41||-48||-81||-56||-|
|Amendments from PESA|
|Local Government spending||-||-||-||-||-224|
|Total CRA amendments||-261||-231||-285||182||-|
|Total PESA amendments||-||-||-||-||-224|
Note: Amendments do not include EU Transactions
Expenditure accounting adjustments
Spending in GERS is based on the HM Treasury Total Expenditure on Services ( TES) concept, which accounts for around 90% of total spending. Accounting adjustments are used to move from TES to Total Managed Expenditure ( TME), the primary measure of public spending used in the UK Public Sector Finances. As discussed in Chapter 1, for the majority of these adjustments, accompanying adjustments are included in revenue estimates, and therefore do not affect the net fiscal balance or current budget balance. This is shown in more detail in Table A.10.
In order to present Scottish Government and Scottish local government spending on a TME basis in GERS, it is necessary to allocate different parts of the accounting adjustments to either the Scottish Government or other UK Government bodies. Currently, capital consumption, VAT refunds, the subsidy to the Housing Revenue Account, Local Authority Pensions, and Scottish housing associations are allocated to the Scottish Government or Scottish local government. Other elements are allocated to other UK Government bodies operating in Scotland.
Table A.7 below shows the accounting adjustments applied to UK spending in GERS to move from TES to TME. Table A.8 shows the adjustments for Scotland.
Table A.7: Expenditure Accounting Adjustment: UK
|UK total managed expenditure ( TME)||731,993||736,555||751,988||753,917||770,611|
|UK total expenditure on services ( TES)||665,955||674,842||686,659||699,232||710,519|
|UK accounting adjustment||66,038||61,713||65,329||54,685||60,092|
|of which current expenditure:|
|Central government capital consumption||17,129||17,583||17,944||18,347||18,687|
|Local government capital consumption||9,547||10,072||10,585||11,092||11,600|
|Current VAT refunds||11,514||11,640||11,537||11,862||11,819|
|Imputed subsidy from Local Authorities to the Housing Revenue Account 1||354||530||484||700||1,165|
|Imputed flows for Renewable Obligation Certificates 2||1,966||2,532||3,064||3,900||4,672|
|Local authority pensions||1,911||1,997||1,908||1,953||2,280|
|British Transport Police Service Agreements||221||279||238||145||145|
|Current expenditure residual||4,285||6,272||6,835||-542||-352|
|of which capital expenditure:|
|Capital VAT refunds||2,145||2,006||2,065||2,150||1,916|
|Royal Mail Pension Plan||9,460||0||0||0||0|
|Capital expenditure residual||-50||-1,006||-144||-521||835|
1 The Housing Revenue Account (
classified as a public corporation by the
which means that they pay dividends on their profits to local
authorities. To ensure that these dividends are non-negative, the
impute a subsidy from local authorities to
HRAs to cover
any shortfall (offset in public corporation gross operating
surplus, which scores on the revenue side of the account).
2 Renewable Obligation Certificates are bought and sold by energy companies. The ONS have decided that these flows should be channelled through central government and so impute offsetting amounts of spending and income.
Table A.8: Expenditure Accounting Adjustment: Scotland
|Scottish total managed expenditure ( TME)||68,094||67,581||68,487||69,048||71,209|
|Scottish total expenditure on services ( TES)||62,430||62,574||63,372||64,669||66,082|
|Scottish accounting adjustment||5,664||5,008||5,116||4,379||5,126|
|Percentage of UK accounting adjustment||8.6%||8.1%||7.8%||8.0%||8.5%|
|Of which current expenditure:|
|Central government capital consumption||1,318||1,421||1,337||1,301||1,332|
|Local government capital consumption||941||992||1,044||1,094||1,144|
|Current VAT refunds||1,078||1,025||1,011||1,054||1,050|
|Imputed subsidy from Local Authorities to the Housing Revenue Account 1||28||41||38||55||91|
|Imputed flows for Renewable Obligation Certificates 2||233||300||364||463||554|
|Local authority pensions||169||182||177||180||211|
|British Transport Police Service Agreements||18||23||20||12||12|
|Current expenditure residual||357||521||566||-45||-29|
|Of which capital expenditure:|
|Capital VAT refunds||201||177||181||191||170|
|Royal Mail Pension Plan||788||0||0||0||0|
|Capital expenditure residual||-4||-85||-13||-44||69|
1, 2 See notes to Table A.7
The table below shows which parts of the Scottish expenditure accounting adjustments are included as revenues, and where they appear in the revenue tables.
Table A.9: Accounting Adjustments, Revenue and Expenditure: Scotland, 2016-17
|Expenditure AA||Revenue AA||Revenue line|
|Of which current expenditure:||£ million|
|Central government capital consumption||1,332||1,332||Gross operating surplus|
|Local government capital consumption||1,144||1,144||Gross operating surplus|
|Current VAT refunds||1,050||1,050||VAT|
|Imputed subsidy from Local Authorities to the Housing Revenue Account||91||-||n/a|
|Imputed flows for Renewable Obligation Certificates||554||554||Other taxes, royalties, and adjustments|
|Local authority pensions||211||-||n/a|
|British Transport Police Service Agreements||12||12||Other taxes, royalties, and adjustments|
|Current expenditure residual||-29||-||n/a|
|Of which capital expenditure:||0|
|Capital VAT refunds||170||170||VAT|
|Royal Mail Pension Plan||0||-||n/a|
|Capital expenditure residual||69||-||n/a|
|Total accounting adjustments||5,126||4,263|
Reconciliation to published Scottish Government and Scottish Local Government budgets
There are a number of differences between the figures for spending by Scottish Government and Local Authorities presented in Table 3.8 and figures presented in Scottish Government budgets and Scottish Local Government Finance Statistics. The key differences relate to accounting treatments, particularly of pensions, VAT refunds, and depreciation.
GERS uses National Accounts principles, which show pensions expenditure as the difference between monies paid into the pension fund and monies paid out, and which shows gross expenditure before VAT refunds. Depreciation in GERS is based on the concept of capital consumption, which uses estimates of the value of assets used to provide services in terms of current asset values.
In contrast, budget documents use financial accounting principles, which include a measure of future liabilities of pension funds, and which shows net expenditure after VAT refunds. Depreciation is based on historical asset prices.
A more detailed description of the differences is provided in Box 5.2 of GERS 2013-14.
Table A.10 below shows the reconciliation of published Scottish Government and Scottish Local Government Finance figures to the figures published in the CRA and GERS. This shows figures for 2015-16 rather than 2016-17, as this is the latest year for which published accounts were available for both the Scottish Government and Scottish local government. 2016-17 figures in GERS are based on provisional outturn estimates.
Table A.10: Reconciliation of published budget documents to GERS expenditure Table 3.8
|Published Scottish Government budget 1||36.9|
|Spending by Audit Scotland and Scottish Parliament||0.1|
|Public corporation capital spending||0.3|
|Total Scottish Government expenditure||37.3|
|Adjustments to align budget to CRA measure of spending|
|Grants to other public sector bodies ( e.g. local government)||-10.8|
|Financial transactions associated with student loans and public corporations||-0.5|
|Adjustments to move from spend 'in' Scotland to spend 'for' Scotland 2||-0.1|
|Final Scottish Government expenditure on services for Scotland||21.8|
|Scottish Local Government|
|Published Local Government gross current expenditure 3||12.7|
|Income excluding grants from Central Government 4||-2.0|
|Published Local Government gross capital expenditure 5||2.3|
|Income from sales of capital assets 6||-0.2|
|Final Scottish Local Government expenditure on services for Scotland||14.6|
|Scottish Government & Local Government expenditure on services for Scotland||36.5|
|National Accounts adjustments 7|
|Other accounting adjustments||0.4|
|Final Scottish Government and Scottish Local Government TME||40.5|
1 Scottish Government Draft Budget 2016-17 Annex G
2 These are adjustments made to Scottish Government spending in HM Treasury's CRA publication. They primarily relate to spending on museums and pensions, to reflect where spending undertaken by the Scottish Government benefits residents from the rest of the UK.
3 Scottish Local Government Finance Statistics 2015-16, Annex B. Total General Fund (excluding the Housing Revenue Account and trading with the public) employee costs, operating costs, and support services costs after statutory adjustments, less recharges
4 As Note 3. Total General Fund (excluding the Housing Revenue Account and trading with the public) income less government grants
5 As Note 3. All services total gross capital expenditure (Annex G)
6 As Note 3. Total capital receipts from sales of assets (Annex I)
7 See Table A.9
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