Scotland's economy on the right trajectory, Nicola Sturgeon says

Nicola Sturgeon has said an improvement in Scotland's public finances shows the economy is on the "right trajectory".

The First Minister said the latest Government Expenditure and Revenue Scotland (GERS) statistics would help inform the debate over Scotland's future.

Ms Sturgeon said the figures painted a more positive picture than the assumptions made in the SNP's Growth Commission on an independent Scotland - due to be debated by party members at a series of national assemblies starting on Saturday.

GERS statistics for 2017/18 show the country spent £13.4 billion more than it raised, including a geographic share of North Sea revenues.

This represents 7.9% of Scottish GDP - down from 8.9% the previous year but four times higher than that of the UK as a whole (1.9% of GDP).

North Sea revenue rose from £266 million in 2016/17 to £1,327 million while onshore tax take increased by £2 billion, taking total revenue to £60 billion.

Including a geographic share of North Sea revenues, Scottish public-sector revenue is the equivalent to £11,052 per person, about £306 lower than the UK average.

Public spending in Scotland increased to £73.4 billion, equivalent to 9.3% of total UK public-sector expenditure, and £13,530 per person - £1,576 greater than the UK average.

Ms Sturgeon said: "Looking at the wider economic picture, these figures - along with recent labour market stats, labour productivity and GDP figures - show that Scotland is on the right trajectory."

Speaking to journalists at a briefing in Glasgow, she rejected the suggestion that higher public spending north of the border despite the deficit was a "persuasive argument for the union".

"There are very good reasons why public spending per head in Scotland is higher than it is in the UK, not least the rurality of our population," she said.

"If we look at the situation in Scotland within the UK over a longer period of time, this notion that Scotland is somehow subsidised, I think, simply does not stand up to scrutiny."

The first minister said Brexit posed a "real and present danger" to the Scottish economy.

She said: "That's one path that lies ahead. The other one is that we take more control over our own economy to put the task of growing our economy more firmly into our own hands.

"I think it's important that that's a positive debate in the years to come and these numbers as well as other information will no doubt inform that in the period ahead."

Ms Sturgeon added: "The position narrated in GERS today is actually slightly better than the assumptions made for the corresponding year in the Growth Commission.

"That would suggest the trajectory is more positive in reality than the Growth Commission assumed."

Scottish Secretary David Mundell described the level of Scotland's deficit compared with the UK figure as "concerning".

He said the figures "also confirm that being part of a strong United Kingdom - the fifth largest economy in the world - is worth nearly £1,900 for every single person in Scotland, which supports vital public services".

"Simply put, Scotland contributed 8% of UK tax and received more than 9% of UK spending for the benefit of families across the country," he added.

Scottish Conservative finance spokesman Murdo Fraser said: "If Nicola Sturgeon wants to continue her threat of second referendum, she has to come out and explain where she would find £13 billion to fill this deficit."

Scottish Labour leader Richard Leonard said: "People across Scotland are sick and tired of austerity - and these figures show that the SNP's plans for independence would mean unprecedented levels of austerity for Scotland."

Scottish Liberal Democrat Leader Willie Rennie: "Whichever way you look at it, under nationalist plans all the good things we all want to do in Scotland would be under threat because of funding cuts."

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