UK’s most-borrowed country, Edinburgh, will become UK’s cheapest by 2025
Posted On July 25, 2021
READ MORE The Scottish Government has said that by 2025, Scotland will become the UK’s least-borrowing country.
In the first of a series of research papers, Scottish Government economists have estimated that by 2031, Scotland’s GDP will fall by almost £3bn, while its public finances will be in a state of deficit.
The research, which was released this week, is based on data from the Scottish Government’s Land Revenue Agency and the Scottish Regional Development Agency, which together control around half of Scotland’s land, water and public infrastructure.
It is also based on the Government’s own forecasts for the next five years, which predict a deficit of £3.9bn.
The Scottish government said the forecasts are based on assumptions that it could have achieved a £4bn surplus by 2025 if the Government had followed its own fiscal plan.
The new figures, which will be published on Wednesday, show that the average value of all properties in Scotland will fall £1,200 by 2025.
The average value in the region will also fall by £300, or 12%, in 2025.
Scottish Housing Minister Gordon MacGregor said: “It’s absolutely clear that Scotland will be a lower-earning place by 2025 than it is today.”
He added: “Our forecast is based upon an economic outlook that’s already been set.
The Government has now published its forecasts.”
Mr MacGregar said the Government was “deeply committed to the growth of Scottish business and employment” and said it was “time to deliver on the promise” of the Barnett formula.
The Government has also set aside a further £1.5bn for the development of Scotland and the north-east of England.
Scottia has seen a dramatic rise in the number of properties that are under the control of the region’s Housing Agency, including some properties in Edinburgh that have been bought and sold multiple times.
Scottian Housing Minister Michael Russell said: “[The new data] does not provide any reassurance about what is going to happen in the future.”
Mr Russell said he did not expect the region to see any rise in house prices in the next 10 years.
Scottland’s Land Surveyor-General, Mark Lewis, said: “”This is a very encouraging data point, but it doesn’t give us a firm answer to what’s going to be going on in the market.
“He said it would be a “mistake” for the Government to set aside more money than was required.
Mr Lewis said the data did not provide a complete picture of what will happen to the property market in Scotland.
He said the number and value of homes could fall over the next decade and that a range of factors could be at play, including rising house prices, population growth, and migration.
Scottians’ finances have also suffered in recent years, and the average family in Scotland has seen their incomes fall by more than a third since 2010.
The latest figures showed that Scottish families had fallen from £7,100 to £4,100, while Scottish earners have fallen by almost 2.5% since 2010 to £30,400.
The most recent official figures show that Scotland’s disposable income is just over £2,500, a drop of more than half from the year before.
The latest economic forecasts, from the Bank of England, show Scotland’s economy will contract by 0.5 per cent in the first half of this year.