@RobG www.google.com/amp/s/www.theweek.co.uk/checked-out/84933/does-london-really-subsidise-the-uk%3famp
I look at facts
The data report published yesterday is a simple view of tax receipts versus government spending that gives the surplus or deficit figures for each part of the UK.
It shows that only three parts of the country generated a surplus of any size last year: London, the wider south-east and the east of England.
The capital was the biggest contributor, with a surplus of £3,070 per head. Spending is high in London, due to factors such as high rents boosting the housing benefit bill, but tax revenues are huge at £15,756 per head.
"The south-east and the east of England also raised more in taxes than they received in spending in 2015-16 – by £1,667 and £242 per person respectively," adds the FT.
Why is this important?
Aside from the implications for Brexit negotiations for the City of London, there are also important questions for the devolved administrations – and for Scottish independence in particular.
The largest deficit was recorded in Northern Ireland, of £5,437, followed by Wales, which also recorded the lowest tax-take per person, with a shortfall of around £4,500.
"The deficit per head in Scotland was £2,824 last year," says Nils Pratley in The Guardian.
"To reduce that figure as a standalone nation, taxes would have to rise or spending would have to fall, other factors being equal."
It doesn't matter as much that NI has a deficit cos they can rely on the south (which is richer than the UK) to boost it. But if Scotland wants to go independent, it needs to at least have a surplus or to sacrifice a lot in the short term for nation building. Give up free healthcare and university, increase taxes for the general population but lower them for corporations to attract foreign investment, introduce conscription. These are the hard choices that will be inevitable and which the electorate are not being told about.