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In 2010 there was record 拢8.5 billion gap between UK Government spending on welfare and pensions in Scotland and all the revenue raised from North Sea oil and gas.

Scottish Secretary Michael Moore said it was a great strength of the UK that we provided the same level of help to those who needed it regardless of which part of the UK they live in. He also said it highlighted the fact that the Scottish Government鈥檚 numbers 鈥渄on鈥檛 stack up鈥� when they propose that oil and gas revenues will pay for the costs of separating Scotland from the rest of the UK.

Figures from the Scottish Government show that identifiable spending on welfare and pensions by the UK Government in Scotland was just over 拢15bn in 2010 while oil revenues totalled 拢6.4bn. In fact, the figures show that pensions spending alone in Scotland in 2010 of 拢7.2bn could not be covered by oil and gas revenue.

Scotland Office analysis of the spending and revenue figures from the Scottish Government show that, since records began in 2002, defined UK spending on pensions and welfare in Scotland exceeds the total revenue from oil and gas over that period by more than 拢38bn.

The UK Government has spent 拢98.1bn on pensions and welfare since 2002 while the total revenue from oil and gas was 拢59.7bn. The analysis shows that in no year has oil revenue covered the welfare bill听- even in 2009 when North Sea revenue reached almost 拢13bn.

The Scottish Secretary Michael Moore said:

鈥淥il and gas is a vital sector for the Scottish economy but these numbers put things in some perspective.

鈥淧ensions and welfare spending is crucially important to people in Scotland and the UK.

鈥淭he great strength for us within the UK is that we get a common level of provision for welfare and pensions. It doesn鈥檛 matter whether you鈥檙e in Cornwall or the far North of Scotland, you are given the same support.

鈥淭he scale of the UK means we can better withstand economic shocks in certain parts of the country and look after those who need help.

鈥淚f revenues from oil and gas revenue decline significantly听- as they can - we have got the bigger resources of the UK to keep welfare and pensions payments going.

鈥淭his highlights yet again the fundamental questions the Scottish Government must answer about how you deal with the costs of separating Scotland from the rest of the UK. Oil and gas revenues are offered up as the solution but the number don鈥檛 stack up.鈥�

Table (拢millions)

2002-03听听听听听听听听听听听听听听听听听听听听听听 听9,992听听听听听听听听听听听听听听听听听听听听听听 5,097

2003-04听听听听听听听听听听听听听听听听听听听听 听10,975听听听听听听听听听听听听听听听听听听听听听 4,284

2004-05听听听听听听听听听听听听听听听听听听听听听听11,456听听听听听听听听听听听听听听听听听听听听听 5,183

2005-06听听听听听听听听听听听听听听听听听听听听听 11,908听听听听听听听听听听听听听听听听听听听听听 9,384

2006-07听听听听听听听听听听听听听听听听听听听听听 12,199听听听听听听听听听听听听听听听听听听听听听 8,924

2007-08听听听听听听听听听听听听听听听听听听听听听 12,701听听听听听听听听听听听听听听听听听听听听听 7,464

2008-09听听听听听听听听听听听听听听听听听听听听听 13,842听听听听听听听听听听听听听听听听听听听 12,925

2009-10听听听听听听听听听听听听听听听听听听听听听 15,039听听听听听听听听听听听听听听听听听听听听 6,491

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