Hm Treasury
The latest Scottish GDP figures have been published this morning forJune 2022andQ2 2022.
Responding to the statistics,Scottish Secretary Alister Jack said:
We are facing unprecedented global challenges, but our economy showed huge resilience emerging from the pandemic and I feel sure we will come through these uncertain times too.
Supporting familiesand businesses is ourpriority.A quarter of all UK households will receive 1200 of direct help as part of our 37 billion package to assist the most vulnerable, withthefirst cost of living payments already paid out to over seven million people.
Our steps to support businesses includeslashing fuel duty, reducing employer National Insurance and freezing alcohol duty which helps pubs and our hospitality industry.All this is in addition to the Scottish Government receiving a record 41 billion per year settlement for the next three years.
Background:
The extra bank holiday for the Queens Platinum Jubilee in June had a one-off effect in reducing economic activity that month. When weve had similar Jubilee bank holidays in the past, we have seen falls in GDP within that month but have then seen a bounce back in the following month.
We have taken action to help households with 37 billion worth of support, which includes targeted support to help people through the difficult winter ahead phased throughout the year.
As well as direct cost of living payments, there has also been a record fuel duty cut. The National Insurance cut is worth up to 330 a year for the typical employee andchanging the Universal Credit taper rate saves a typical low-income working household 1,000 per year in tax. In April, we raised the minimum wage to 9.50 meaning a pay rise of 1,000 a year for a full-time worker.
The Scottish Government has been provided with an extra 82 million to help vulnerable families at their discretion. This is in addition to the significant income tax and welfare powers they already have.
According to the Quarterly estimate (April to June), Scotlands GDP remained unchanged (0.0% growth) in real terms during the second quarter of 2022 and is still 0.1% below pre-pandemic levels (2019 Q4). Over the same period, GDP in the UK as a whole fell by 0.1% and is now 0.6% above pre-pandemic levels.
Scotlands onshore GDPis estimated to have fallen by 0.8% in June, after growing by 0.6% in May, andis now 0.4% above the pre