Scots' £5bn tax gain claim

The figures do not include oil revenues to the Treasury

Scotland has received about £5bn more than it generated in taxes, according to a report.

The figures, published by the Scottish Executive, did not include revenues from the oil industry and have been strongly disputed by the Scottish National Party.

The SNP claims that the calculations contained in the Government Expenditure and Revenue report are "outdated".

The nationalists say that, according to their calculations, Scotland would be in pocket by almost £8bn

The figures suggest that total expenditure for Scotland in 1998-99 was £33.1bn, equivalent to 10% of the UK total.

The report says Scotland receives more than it contributes

Tax receipts for the same period were £28.2bn, which produced a net borrowing figure attributable to Scotland of £4.9bn.

The calculations did not, however, include North Sea oil revenues.

The report concluded that in 1998-99, North Sea oil revenues going to the UK Exchequer were around £2.5bn.

SNP finance spokesman Andrew Wilson disputed the figures saying that North Sea oil revenue for 2001-02 would be £6.2bn because of the high price of oil.

He said the SNP had calculated in its own report that, over this year and next, Scotland would have £7.7bn more revenue than expenditure.

He said the sums were contained in a party document, called Scotland's 21st Century Opportunity, which drew on Westminster statistics.

Figures 'not precise'

He said: "Even on the government's own discredited analysis, Scotland is comfortably in surplus.

"They have decided to publish this report just days before Christmas and on the same day as the Madonna wedding, so they obviously feel that they have something to hide."

The executive figures suggest Scotland would run up a deficit of £2.4bn, even if it had control of oil revenues.

However, officials admitted the figures used in the report were "not precise" and were "only indicative".

They also refused to rule out the possibility that their calculations could be out by as much as that £2.4bn, although they said that was "unlikely".

Scottish Secretary John Reid said: "The report provides an impartial and important contribution to the understanding of public expenditure and revenue issues in Scotland.

Tax receipts

"It helps explain how public finances are distributed throughout the UK."

Expenditure includes identifiable costs which covers spending incurred on behalf of the residents of Scotland and totalled £25.7bn - 10.2% of the UK total.

Non-identifiable expenditure covers expenditure incurred on behalf of the UK as a whole, such as defence, while other expenditures includes debt.

Receipts are calculated principally on the basis of income tax, social security contributions, VAT and local authority revenues.