__Menu ![\\"Return](\\"/static/img/ff-logo.a3c246edc83d.png\\"/) Donate * Fact checks ## Fact checks Our fact checking systematically raises standards in public debate and changes the behaviour of powerful actors * All fact checks * Latest * Health * Crime * Education * Climate * Tax * Cost of living * Politics Live * Campaigns ## Campaigns We’re campaigning to tackle bad information online, protect our elections and improve the quality of information in public debate * Campaigns * Follow: WhatsApp * Subscribe: Email * Read: Blog * Asks of the new government * Supporter interventions * Your MP * Policy ## Policy Our policy work aims to improve the information environment, in order to protect and encourage good public debate * Policy * Reports * Framework for information incidents * Research * The Full Fact Report * Letters & submissions * The Online Safety Act * Full Fact AI ## Full Fact AI Our technology and training work is designed to help everyone work faster and smarter * Full Fact AI * Full Fact Training * About Full Fact AI * About ## About Bad information ruins lives. We’re a team of independent fact checkers and campaigners who find, expose and counter the harm it does * Who we are * How we fact check * After we fact check * Our team * Contact us * Jobs * Funding * Independence * Impartiality * Feedback & corrections * FAQs * International networks * Search 1. The economy / 2. Comparing UK regions # Scottish taxes don’t subsidise English spending 16 September 2021 ##### What was claimed Scotland raises £25 billion a year in income tax. ##### Our verdict False. It raised £13 billion from income tax in 2020/21. ##### What was claimed Tax on Scottish whisky amounts to £20 billion a year. ##### Our verdict False. A reliable figure for this isn’t available, but the economic output of the entire industry is far less than this. ##### What was claimed Income tax and tax on whisky go to England to be spent on English priorities. ##### Our verdict Most income tax is kept by the Scottish government. Tax on whisky and other taxes go to the UK Treasury but when money is spent on England-only policy areas, the Scottish government receives money back. ##### What was claimed Scotland subsidises England. ##### Our verdict False. Public spending per person is higher in Scotland than across the UK as a whole. Scotland receives more public spending than it raises in tax. __1 of 4 claims A post on Facebook claims that income tax and tax raised on whisky sales in Scotland go “straight to England” to be spent on its priorities, and that Scotland subsidises England. This is not true. Firsty, the figures given for tax revenue from Scotland are wrong. The post claims Scotland raises £25 billion a year in income tax. In truth, it was £13 billion last year and the year before that. It also claims that tax on Scottish whisky amounts to £20 billion a year. We don’t know the exact figure for this, but it is certainly far lower. The Scotch Whisky Association estimates that the entire industry contributes £5.5 billion to the UK economy, and duty on all spirits across the UK raises £4 billion a year. The post also claims that this money goes to England. Most income tax, which is mentioned in the post, doesn\'t. The rates on earnings are set by Scottish government, which keeps the revenues to spend as it sees fit. However, most tax raised in Scotland including spirits duty does go to the UK government which, via the Treasury, decides how to spend the money. If it decides to increase spending in England on an area that is devolved—such as healthcare, education, transport or housing—then the devolved nations receive money equivalent to their population size to spend on whatever they choose. The Institute for Government says: “For example, if spending on healthcare [which is a devolved area] in England increases by £100m, the Scottish government’s budget would increase by £9.7m since Scotland’s population is 9.7% of England’s.” This means that while a lot of tax raised in Scotland technically “goes straight to England”, it is misleading to claim that it is spent on English priorities without noting that, when this happens, the Scottish government receives money back. Because Scotland raises slightly less tax per person than across the UK as a whole, when this happens Scotland essentially receives more back than it originally put in. The method used to calculate this is called the Barnett formula, and when it was put into place in the 1970s Scotland had a higher level of public spending per person than England. This essentially locked in this disparity. Honesty in public debate matters You can help us take action – and get our regular free email Sign up ## So does Scotland subsidise England? In 2020/21, Scotland accounted for 7.9% of tax raised across the UK, but 9.1% of all public spending. And in 2019/20 (the last year for which full figures for all four nations are available), public sector revenue raised was £12,300 per person in Scotland and £12,600 in England. Figures for public spending aren\'t directly comparable, as we only have full data broken down by nation for ‘identifiable expenditure’, which accounts for around 87% of total public spending (the remaining 13% is regarded as benefiting the UK as a whole because it is spent on areas such as defence, and so is not attributed to a particular nation). If you look at identifiable expenditure only, then the figure was £11,600 in Scotland (17% above the UK average) and £9,600 in England—and once you factor in non-identifiable spending too, public spending in Scotland is higher than revenue raised. This means it is not correct to say that Scotland subsidises England. This article is part of our work fact checking potentially false pictures, videos and stories on Facebook. You can read more about this—and find out how to report Facebook content—here. For the purposes of that scheme, we’ve rated this claim as false because the figures given are wrong, as is the claim that Scottish income tax goes to England, and the idea that Scotland subsidises English public spending. * By Abbas Panjwani * Share this: * Twitter * Facebook ## Was this helpful? Full Fact fights for good, reliable information in the media, online, and in politics. 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Scotland raises 25 billion a year in income tax