There is no ‘Union Dividend’.

So called pro–UK politicians from both the Conservatives and Labour often trumpet the “Union dividend” — the extra billions Scotland receives from the United Kingdom — as proof that staying in the UK benefits ordinary Scots. On paper, the numbers seem impressive: according to the Government Expenditure and Revenue Scotland (GERS) 2024–25 report, Scotland receives £2,669 more per person in public spending than the UK average.

But in reality, this dividend is wasted as under the SNP, Scotland’s extra funding is being squandered on a bloated, inefficient, and politically motivated public sector, while schools, hospitals, and local services continue to decline. Ordinary Scots see none of the supposed benefit.

(Note: It’s also time pro-UK politicians and commentators stopped calling the UK a ‘union’ of four countries’. The UK isn’t a union of four nation states; it’s a single state that has devolved administrations. The union was a one-time event in 1707 that created a new single country. To keep calling it a ‘union of four countries’ plays into separatist rhetoric)

The latest GERS figures hammer home the huge benefits we all get as part of the United Kingdom.

Every person in Scotland is £2,184 better off – that’s the highest Union dividend ever.

These figures are a devastating blow to Nicola Sturgeon’s push for indyref2. pic.twitter.com/8FXoPPOHjT
— Douglas Ross MSP (@Douglas4Moray) August 24, 2022

Scotland’s Bloated Public Sector

The Fraser of Allander Institute confirms the structural truth: Scotland’s £26 billion fiscal deficit is not a temporary problem — it is the result of a part of the UK under devolution that has grown too large to function effectively.

Public sector staffing remains elevated compared to pre-COVID-19 levels, and token cuts will not reverse this.
The total wage bill for Scotland’s devolved public sector is approaching £30 billion, nearly 55% of the block grant from Westminster, and may rise to £32 billion by 2029–30.

That is more than half of Scotland’s “Union dividend” being absorbed by salaries, pensions, and bureaucracy — money that could instead fund hospitals, schools, policing, and infrastructure.

Scotland’s public sector is no longer a tool for delivering services; it has become an end in itself. The devolved administeation exists to sustain itself, expand its workforce, and fund politically convenient initiatives.

Fiascos and Waste

The SNP’s mismanagement is not abstract. It is visible in every corner of public spending:

£350 million on ferries that still do not sail
Prestwick Airport, which has devoured tens of millions with no recovery plan
A sprawling network of quangos and advisory boards, many duplicating work, producing little value, and staffed with political appointees
These are not isolated blunders. They are symptoms of a devolved administration addicted to expansion, bureaucracy, and political patronage, while frontline services collapse. Scotland spends more per head than the rest of the UK — and yet outcomes are worse: longer NHS waiting times, declining school standards, and local authorities warning of service failure.

Why the “Union Dividend” Is a Hollow Promise under legislative devolution and the SNP

A dividend is a reward for performance. Scotland’s “Union dividend” is the opposite: a subsidy for incompetence and mismanagement. Extra funding exists, but because the SNP prioritises bureaucracy and vanity projects over outcomes, ordinary Scots see no tangible benefit.

Alleged pro-UK politicians continue to tout the extra funding as proof that Scotland prospers in the UK. But the reality is damning: the SNP ensures that the additional money is absorbed into the machinery of government, leaving citizens worse off despite higher per-capita spending.

The Political Crisis

Scotland’s failure is political. The extra money flowing from Westminster is real. But it is being squandered by the Scottish Executive (Holyrood), especially under the SNP, which has made a political choice to grow the public sector and fund projects with political rather than public utility.

The Fraser of Allander Institute calls the deficit structural. Scotland spends faster than it earns. The devolved administration is simply too large to deliver the services people need. Ordinary Scots pay the price, while the SNP collects credit for what it does not achieve.

The Way Forward: Reform or Abolish

There is only one solution if Scotland is to benefit from its resources: cut the bloated public sector, eliminate waste, and hold quangos accountable. That means:

Reining in staffing and wages in the devolved public sector
Ending politically motivated vanity projects, like ferries that never sail and mismanaged airports
Prioritising frontline services over bureaucracy

Until that happens, the “Union dividend” will remain a subsidy for inefficiency rather than a reward for achievement. The evidence is unmistakable: Scotland gets more money, yet services decline. Scotland’s problem is political. The SNP’s addiction to expanding its administration and waste has turned extra funding into a liability rather than an asset.

The sooner the bloated devolved administration is reined in — or preferably Holyrood abolished — the sooner Scotland can turn funding into results instead of perpetuating decline.

Written by Stephen Bailey. Stephen is a commentator on UK constitutional issues.