SNP accuses Westminster of cutting budgets as Scottish oil revenues rise

The Scottish National Party has lambasted the UK Government for cutting the country’s devolved budget at the same time as North Sea oil revenues look set to rise.

The Scottish Executive’s budget for the coming year has been reduced by up to £814 million in the face of ongoing economic difficulties and belt-tightening across public services.

The cuts come as forecasts estimate that North Sea oil—over 90 percent of which is located in Scottish waters—will contribute up to £10 billion more than expected to the UK Treasury over the next six years.

The SNP’s Treasury spokesman, Stewart Hosie, touted the findings as evidence that the Union is denying Scotland the fiscal powers it needs, claiming that “while Labour cuts budgets, taxes hard working Scots and refuses to put forward essential investment… Scotland’s oil is bankrolling the rest of the UK."

Meanwhile the party’s energy spokesman, Mike Weir, has claimed that the Westminster government is making inefficient and irresponsible use of the £8 billion-a-year revenue stream, which would be better handled by a devolved administration.

The nationalist view that the country’s abundant oil and gas reserves would allow an independent Scotland to spend more on public services is contested by all the other major parties in Holyrood, who point to Scotland’s privileged position in the UK tax system as evidence that the Union continues to benefit Scottish interests.

Under the existing spending formula, the Treasury allocates around 20 per cent more tax revenue to each Scottish citizen than it does for those resident in England. This translates to around £1,500 extra annually for each person north of the border.

Meanwhile, the Scotland Office—part of the UK government—has pointed out that the nation, considered separately from the UK, would have run a budget deficit for the last 18 years, while noting that finite oil reserves cannot provide long-run financial stability.

A spokesperson for Scottish Labour said: “Scotland gets more money from being part of the UK than we would by being separate.

"The reality is that even with all the North Sea oil monies, we spend more on public services in Scotland than we get from taxation in Scotland."