The Scottish Government said on Wednesday that revenues raised in Scotland reached a record £98.3 billion in 2025-26, an increase of £6.3 billion or 6.9% over the year.
Revenue per person in Scotland of £17,718 was similar to the UK average £17,720 in 2025-26, when North Sea revenue is included.
Revenue raised from the North Sea was £3.2 billion in 2025-26, 3.2% of all revenue raised in Scotland.
“The largest increases in revenue in Scotland in 2025-26 were national insurance contributions (+£2.4 billion) and income tax receipts (+ £1.5 billion),” said the Scottish Government.
“This follows the decision by the UK Government to increase the rate of employer’s national insurance contributions from April 2025, and the Scottish Government’s decision to freeze the higher, additional, and top rate of Scottish Income Tax.
“It also reflects the continuing effects of inflation and strong nominal earnings growth.
“The largest decrease in revenue was in North Sea taxes (-£0.4 billion), which reflects falling oil and gas prices during the year.”
The figures are included in the annual Government Expenditure and Revenue Scotland (GERS) report, which estimates the revenue raised in Scotland and the cost of public services provided for Scotland.
“Scotland’s notional net fiscal balance was -10.9 per cent of GDP compared with -4.2 per cent for the UK,” said the Scottish Government. “This is an improvement of 0.6 percentage points in Scotland compared with a 1.0 percentage point improvement for the UK.
“In cash terms, the net fiscal balance in 2025-26 was -£25.3 billion, improving over the year by £0.6 billion. This improvement in 2025-26 reflects that revenue grew by £6.3 billion (6.9 per cent), while expenditure grew at a slower pace by £5.7 billion (4.8 per cent).”
The net fiscal balance reflects the difference between revenue raised in Scotland compared with expenditure on behalf of the people of Scotland.
Devolved revenues in Scotland raised £27.8 billion in 2025-26, an annual increase of £2.1 billion or 8.2%. These revenues include Council Tax, Non-Domestic Rates, Land and Building Transaction Tax, Scottish Landfill Tax and Scottish Income Tax.
Spending on behalf of the people of Scotland by both devolved and reserved governments was £123.6 billion in 2025-26, an increase of £5.7 billion or 4.8% over the year.
Spending per person in Scotland in 2025-26 was £22,281 compared to £19,561 per person in the UK meaning that spending per person in Scotland was £2,720 higher than in the UK in 2025-26.
The largest annual increase in total spending in Scotland was in social protection (+£2.1 billion), and health (+£1.5 billion).
Deputy First Minister and Finance Secretary Jenny Gilruth said: “The latest GERS stats show that total and devolved revenues grew faster than spending – showing in particular that in the areas where our Government has control, we are delivering sustainable finances.
“The significant increase in income tax revenues shows that the decisions which this Government has taken are helping to deliver additional funding for measures to ease the cost of living like the Scottish Child payment, free prescriptions, bus travel for under-22s and free university education.
“GERS provides notional estimates for Scotland’s deficit as part of the UK – it simply does not show what an independent Scotland’s position will be.
“With the powers of independence we would be able to chart a different path, ensuring we grow the economy to allow Scotland to reach her full potential.”