Note that the tourism expenditure chart below refers to figures in 2016 constant prices. Fish and shellfish such as herring, crab, lobster, haddock and cod are landed at ports such as Peterhead, the biggest white fish port in Europe, Fraserburgh, the biggest shellfish port in Europe, Stornoway, Lerwick and Oban. Despite their new status as citizens of the United Kingdom, it took many decades for Scottish traders to gain a noticeable foothold in the colonial markets which had long been dominated by English merchants and concerns. This represents about 4.5% of total Scottish GDP. Contribution of travel and tourism to GDP (% of GDP) of United Kingdom fell gradually from 14.4 % in 2000 to 10.9 % in 2019. Many places in the world rely heavily on tourism as a key source of income and employment. Direct UK heritage tourism expenditure - £8.49bn (= £5 Bn GDP) (GDP multiplier 2.75 then applied to give £13.9 Bn total impact) NB: There is no Scotland figure presented in the report. Oil was discovered in the North Sea in 1966, with the first year of full production taking place in 1976. Scotland still conducts the majority of its trade within the UK: in 2017, Scotland's exports totalled £81.4 billion, of which £48.9 billion (60%) was with constituent nations of the UK, £14.9 billion with the rest of the European Union (EU), and £17.6 billion with other parts of the world. In tandem with the decline of sea-fishing, commercial fish farms, especially in salmon, have increased in prominence in the rivers and lochs of the north and west of Scotland. Henry Duncan[50], Scotland has four clearing banks: the Bank of Scotland, The Royal Bank of Scotland, the Clydesdale Bank and TSB Bank. The governments which involve themselves in Scotland's economy are largely the UK Government (responsible for reserved matters) and the Scottish Government (responsible for devolved matters) via HM Treasury. [105] Medical and social care spending is forecast to increase as the population is aging faster than in England. In 2015, spending by tourists in Scotland generates around £11 billlion of economic activity in the wider Scottish supply chain and contributes around £6 billion of Scottish GDP (in basic prices). Sheep-raising is important in the less arable mountainous regions, such as the northwest of Scotland, which are used for rough grazing, due to its geographical isolation, poor climate and acidic soils. The State pension age is also reserved, as is the rate and eligibility of the UK State pensions system. Similarly asset servicing on behalf of fund managers has become an increasingly important component of the financial services industry in Scotland, with Scottish-based companies providing expertise in securities servicing, investment accounting, performance measurement, trustee and depositary services and treasury services. The majority of these exports will be consumed or remain within the rest of the UK, for example electricity or service exports such as financial services. Other aspects of economic and fiscal policies remain a matter for Westminster - including currency, corporate tax, energy policy, foreign policy. Tourism Employs 207,000 People, Around One In 12 Jobs In The Economy. [92] The water industry is regulated by the Water Industry Commission for Scotland. The Cabinet Secretary for Justice is responsible for policy matters affecting these systems such as legal aid, prison governance, drugs rehabilitation, reoffending, victims and witnesses, sentencing guidelines, and anti-social behaviour, but has a legal duty to uphold the independence of the courts and the legal profession. The invention of the hot blast for smelting iron (1828) had revolutionised the iron industry, and Scotland became a centre for engineering, shipbuilding, and locomotive construction. Many Scots became soldiers, returning home after 20 years with their pension and skills.[22]. [23] Agriculture gained after the union, and standards remained high. The economy has thus become more diversified and therefore stabler. Council-run schools in Scotland were traditionally referred to as 'public schools' and many Victorian-era schoolhouses to this day have 'public' inscribed on their exterior. The 1980s saw an economic boom in the Silicon Glen corridor between Glasgow and Edinburgh, with many large technology firms relocating to Scotland. [97] The NHS in Scotland began in 1948 under a separate Act from England and Wales and was the responsibility of the Secretary of State for Scotland rather than the Health Secretary before devolution. Scottish waters consisting of a large sector of the North Atlantic and the North Sea, containing the largest oil resources in the European Union – 12:49, 1 DEC … Tourism Secretary Fiona Hyslop has outlined a multi-million pound package of measures to help support Scotland’s world-class tourism industry. [citation needed] In terms of overseas visitors, those from the United States made up 15% of visits to Scotland, with the United States being the largest source of overseas visitors, and Germany (13%), France (7%), Australia (6%) and Canada (5%) following behind. Many former council houses are now run by Housing Associations while others were sold to the tenant under the right-to-buy at a heavy discount. Similarly the Flotta Oil Terminal in Orkney is linked by a 230 km long pipeline to the Piper and Occidental oil fields in the North Sea. [82], The public sector, in Scotland, has a significant impact upon the economy and comprises central government departments, local government, and public corporations. Farming in Scotland was affected by BSE and the European ban on the importation of British beef from 1996. Inland waters are rich in fresh water fish such as salmon and trout although here too there has been an inexorable and so far unexplained decline in abundance over the past decades. In terms of mineral resources, Scotland produces coal, zinc, iron and oil shale. The Scottish Government has complete control over Scottish taxes collected by Revenue Scotland and has complete power to set tax rates and bands (but not the personal allowance) for income tax in Scotland which is collected by HMRC. Unfortunately, tourism can also be a source of problems, especially if it is not managed well. [98] The Cabinet Secretary for Health and Sport is now responsible for the NHS in Scotland. By the 1980s there were nine members of the Association of Scottish Life Offices (the counterpart of the Life Offices Association) but these have demutualised and most were taken over. The first revenues which have been devolved are landfill tax and property transaction taxes, with Scottish revenue collected for these taxes from 2015‑16 onwards. Proposals which have been mooted include the electrification of the rail system to cut journey times. [84], Since the Devolution Referendum of 1997, in which the Scottish electorate voted for devolution, a Scottish Parliament was reconvened under the Scotland Act 1998 and is considered to be a devolved national, unicameral legislature of Scotland. Tourism spend worth £10.5bn Tourism contributes significantly to the Scottish economy and is vital to the economic performance and employment of towns, cities, regions and rural communities across the length and breadth of Scotland. Note that the 2016 domestic expenditure data is not available. and it contributes over £4.25 billion to the UK economy, making up a quarter of all its food and drink revenues. Every year, about a billion tourists take trips: That makes 30 tourists arriving every second. [81] Current non-North Sea revenue in Scotland is estimated to have grown by 13.4% between 2011–12 and 2015-16 in nominal terms. The rail-operator Abellio ScotRail operates most routes within Scotland, with long-distance connections to London operated by Avanti West Coast and London North Eastern Railway. However heavy industry declined in the late 20th century, leading to a shift in the economy of Scotland towards technology and the service sector. Prior to the 2008 financial crisis Scotland ranked second only to London in the European league of headquarters locations of the 30 largest banks in Europe as measured by market value.[52][53]. [28], Scotland's heavy industry began to develop in the second half of the 18th century. The ‘Cult of the Picturesque’ took off. [77] Grangemouth is at the centre of Scotland's petrochemicals industry. Because of the persistence of feudalism and the land enclosures of the 19th century the ownership of most land is concentrated in relatively few hands (some 350 people own about half the land). In common with most other advanced industrialised economies, Scotland has seen a decline in the importance of both manufacturing industries and primary-based extractive industries. Scotland is endowed with some of the best energy resources in Europe,[71] and is a net exporter of electricity, with a generating capacity of 10.1GW primarily from oil, gas and nuclear generation.[72]. [83] This is in addition to employees of the government in the civil service and in local government as well as public bodies and corporations. In 2014, for example, UK visitors made 12.5 million visits to Scotland, staying 41.6 million nights and spending £2.9 billion. The economy revived with munitions production during World War II. [47] The financial services sector employs around 95,000 people and generates £7bn or 7% of Scotland's GDP. A very small proportion of Scotland’s total land mass is classified as arable – circa 10% based on Scottish Government figures[25] Only about one quarter[Figures are inconsistent] of the land is under cultivation – mainly in cereals. Scotland’s relative position has deteriorated a little since 2014, dropping one place to 16th, but is still just ahead of the UK (17th). This means different areas of Scotland will have different restrictions. The Scottish Government set a target of 40% of Scotland's electricity generation be derived from renewable sources by 2020. Scotland is considered to have an advanced communications infrastructure, similar to other Western nations, and has an extensive framework of developed radio, television, landline and mobile phone, as well as broadband internet networks. Furthermore, the textiles industry is the seventh-largest exporter in Scotland accounting for over 3% of all Scottish manufactured products. The home building industry in Scotland directly and indirectly contributed around £5 billion to the Scottish economy in 2006 – about 2% of GDP – greater than that of higher profile industries such as agriculture, fishing, electronics and tourism. The tourism economy and tourism related industries in Scotland support c. 196,000 in 2014 mainly in the service sector accounting for around 7.7% of employment in Scotland. The Royal Bank of Scotland expanded internationally to be the second-largest bank in Europe, the fourth largest in the world by market capitalisation in 2008[citation needed], but collapsed in the 2008 financial crisis and had to be bailed out by the UK Government at a cost of £76 billion;[51] its new global headquarters in Edinburgh augmented the city's position as a major financial centre. Tourism is another important mainstay of the economy of Edinburgh, supporting 30,000 jobs in the city worth £1.6 billion to the city economy. It should also be noted that the Scottish figures exclude offshore oil revenue. This has, however, been combined with a rise in the service sector of the economy, which has grown to be the largest sector in Scotland. [108] The average GDP per capita in the South East England region (excludes London) is €34,200 with no local government area showing a GDP per capita of less than €20,000. The industrial developments, while they brought work and wealth, were so rapid that housing, town planning, and provision for public health did not keep pace with them, and for a time living conditions in some of the towns were notoriously bad. The rail network is primarily centred on the central belt and is used principally as a means of public transport, with some freight movements – for example from the port facilities at Grangemouth and Hunterston Ore Terminal. Retail banking services to individuals followed in the 19th century, on the trustee savings bank model pioneered by Rev. Following the implementation of the Scotland Act 2012 and Scotland Act 2016, an increasing amount of revenue is set to be devolved to the Scottish Parliament, whereby direct Scottish measures of these revenues will be available. [66], Excluding intra UK trade, the European Union and the United States constitute the largest markets for Scotland's exports. These are National Statistics, derived from the International Passenger Survey (IPS). 45,000 people are employed by electronics and electronics-related firms, accounting for 12% of manufacturing output. The new analysis is intended to show how tourism … [citation needed] German sociologist Max Weber credited the Calvinist "Protestant Ethic", involving hard work and a sense of divine predestination and duty, for the entrepreneurial spirit of the Scots. Their respective financial functions are headed by the Chancellor of the Exchequer, and the Cabinet Secretary for Finance, Constitution and Economy. There is a clear separation of responsibility of the powers of both the UK government and the devolved Scottish Government in relation to the formulation and execution of national economic policy as it affects Scotland – this is set out under Section 5 of the Scotland Act 1998. There were around 76.… Solicitors in Scotland are regulated by the Law Society of Scotland, rather than through the Solicitors Regulation Authority. Water and sewerage utilities were never privatised in Scotland and were previously run by local water boards which were gradually amalgamated until in 2002 one national body was created; Scottish Water. According to Eurostat figures (2013) there are huge regional disparities in the UK with GDP per capita ranging from €15,000 in West Wales to €179,800 in Inner-London West. In constant (2016) prices this is an increase of around 8%. The lowlandsare known for their fertile farmland and thick woodlands, the Highlands for their towering mountains, sweeping moorland and dee… Currently renewable energy sources provide Scotland with 35% of its electricity production,[74] with onshore wind generation making the largest contribution, and supporting several thousand jobs. Catriona M. M. MacDonald, and E. W. 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Scotland's Economy – classified, The "Top Secret" 1974 Gavin McCrone Report into Scotland's Economy – unclassified, Department for Business, Energy and Industrial Strategy, Second Industrial Revolution 1860s–1914, Glasgow International Financial Services District, Economic and Financial Affairs Commissioner, https://en.wikipedia.org/w/index.php?title=Economy_of_Scotland&oldid=992956494, Articles with dead external links from December 2016, Short description is different from Wikidata, Articles needing additional references from March 2016, All articles needing additional references, All articles with specifically marked weasel-worded phrases, Articles with specifically marked weasel-worded phrases from February 2017, Articles with unsourced statements from December 2016, Articles with unsourced statements from February 2017, Articles with unsourced statements from June 2013, Wikipedia articles needing clarification from July 2020, Articles with unsourced statements from March 2016, All articles with vague or ambiguous time, Articles with unsourced statements from June 2014, Wikipedia articles needing clarification from February 2017, Articles with unsourced statements from November 2016, Articles with unsourced statements from September 2015, Creative Commons Attribution-ShareAlike License, £2,480 / €3,373 / $3,814 monthly (2014), £1,730 / €2,064 / $2,793 monthly (2011), Fishing, Food & Drink, Forestry, Oil & Gas, Renewable Energy, Textiles, Tourism, Fish, Confectionery, Oil & Gas, Renewable Energy, Scotch Whisky, Textiles, Timber, Water, Maintenance of all roads and pavements (except trunk roads which are the responsibility of, Supporting socially necessary bus services, Protection of vulnerable children and adults, Licensing of taxis and private hire vehicles, Licensing of window cleaners, market traders, scrap metal merchants, and street hawkers, This page was last edited on 8 December 2020, at 01:00. The total value of exports from Scotland to the rest of the UK in 2014 (excluding oil and gas) was estimated at £48.5 billion.[68]. There are several military bases within Scotland, as well as The Royal Scots' Battalion based in Bourlon Barracks, Yorkshire. [17] Scotland is a constituent country of the UK, which is a member of the Commonwealth of Nations, the G7, the G8, the G20, the International Monetary Fund, the Organisation for Economic Co-operation and Development, the World Bank, the World Trade Organization, Asian Infrastructure Investment Bank and the United Nations. [19][citation needed] (For the purpose of balance to this perspective, see Darien scheme.) In 2019 there were 21,805 new homes built according to the 'Housing Statistcs for Scotland Quarterly Update', published on 10th March 2020. Many island communities on Scotland's western seaboard are served by lifeline ferry services operated by the state-owned company Caledonian MacBrayne, which carry tourists as well as freight and are vital to the economies of these islands. The principal companies operating in the sector include; BAE Systems, Rolls-Royce, Raytheon, Alexander Dennis, Thales, SELEX Galileo and Babcock. The Judiciary of Scotland run the Civil and Criminal courts and set court procedure through Acts of Sederunt, or Acts of Ajournal, respectively. A huge influx of visitors can gradually deplete the beauty, uniqueness, character, environment, resources, and social coherence of a tourist destination over time. About 13,340 km² of land (about 15% of the total) is forested. Scots law has 'Delict' rather than 'tort' law, and no legal concept of equity. Excluding trade with the rest of the United Kingdom. Note: Revenues from North Sea oil and gas are not included in these figures. However the adoption of free trade in mid-19th century brought cheap American corn which undersold local farmers. The waters surrounding Scotland are some of the richest in Europe. It closed in 2016. The last coal power station in Scotland closed earlier than anticipated following the reform of electricity connection charges. Aberdeen is the centre of North Sea offshore oil and gas production, with giants such as Shell and BP housing their European exploration and production HQs in the city. According to the REF 2014[65] assessment for computer science and informatics the School of Informatics has produced more world-leading and internationally excellent research (4* and 3*) than any other university in the UK. Although the Bank of England remains the central bank for the UK Government, three Scottish clearing banks still issue their own banknotes: the Bank of Scotland, the Royal Bank of Scotland and the Clydesdale Bank. The top five exporting industries in 2014 were food and drink (£4.8 billion), legal, accounting, management, architecture, engineering, technical testing and analysis activities (£2.3 billion), manufacture of refined petroleum and chemical products (£2.1 billion), mining and quarrying (£1.9 billion) and wholesale and retail trade (£1.8 billion). [107] The most distinct differences in the Scottish criminal justice system is that only a simple majority of 15 is required to convict, the requirement for corroberation of evidence, and the existence of a third verdict. Check the 5-level Covid-19 restrictions for each area to plan and book ahead when considering your trip. [citation needed]. Manufacturing in Scotland has shifted its focus, with heavy industries such as shipbuilding and iron and steel declining in their importance and contribution to the economy. Unlike in England, water infrastructure remains property of Scottish Water, however metering and billing of business customers is now undertaken by water supply companies. Council tax bills in Scotland still include water rates if the property has a water mains connection - it is important to note that some properties in rural areas are not connected to the mains network and have their own private water supply. Area to plan and book ahead when considering your trip, Scottish,. Exchequer, and more suited to cultivation air freight operations and cargo handling facilities Survey IPS! 20 ] Eventually, the Union, and the abolition of internal market in NHS Scotland was in. And philanthropy in Scotland, staying 41.6 million nights and spending £2.9 billion its output throughout much his... And expenditure in Scotland, for which visitor expenditure totalled £4.8 billion tax and channels! In mid-19th century brought the creation of many life assurance companies in,. 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