Brexit

The Scottish Government and the SNP will continue to make the case for Scotland's overwhelming vote to stay in the European Union (EU) to be respected. We will support any second EU referendum that includes an option to remain. The SNP are committed to cross-party efforts in bringing about a second EU referendum. The 2016 campaign was based on lies and breaches in electoral spending from the Vote Leave side of the debate. Allegations of social media manipulation in targeting voters has also been reported since the referendum. Parliament is gridlocked, the Prime Minister is hamstrung – the decision should be put back to the people to get us past this political impasse.

The Scottish Government does not welcome Brexit and has consistently stated in its "Scotland’s Place in Europe" publications that Scotland’s future is best served by continued membership of the EU. Failing that, it considers that continued membership of the European Single Market and Customs Union remain viable alternatives. An Ernst & Young report entitled "Sectoral Impact Analysis and Brexit Readiness" that was published in January 2019, reached the following conclusions:

It made stark warnings about tariff and non-tariff barriers. The only option that can protect our economy is remaining in the EU Single Market and Customs Union
Scottish business has no confidence in the UK to secure a Brexit deal, with only 8% of firms feeling prepared for leaving the EU
Scottish firms fear trade barriers and Sterling volatility will push up food prices, with rural and island communities being hit hardest
It warns of the economic damage of ending freedom of movement and urges the Scottish Government to “continue to push for a migration policy that meets the needs of Scottish business”
Brexit is holding back Scotland by delaying much needed investment.

The impact of Brexit on the poorest people in society has been an afterthought for this Government – and these are the people that are going to be hit hardest. The destruction to the UK economy will have lasting effects on poverty and child poverty rates. The Joseph Rowntree Foundation (Sept 2018) has said that while child poverty rates are set to increase in spite of Brexit, many of the worst hit areas are "highly exposed to changes in trade with the EU and any loss of regional funding". A Hard Brexit will cost each household in Scotland £1,600 – pushing struggling families to the brink, and already poor families into destitution. Without Single Market and Customs Union membership, the future relationship can only be a Free Trade Agreement, which will introduce barriers to Scottish companies’ ability to trade. This will damage jobs, investment, productivity and earnings; and will hit the most disadvantaged in society hardest.

We still have no guarantees against the rights and protections we enjoy as an EU member being eroded post-Brexit. This will have a particular impact on minorities who are protected from discrimination by law enshrined by the EU. The EU affords us with the protection against those laws ceasing to apply within the UK – which is why membership of the EU is so important.

The Health and social care sector is going to take an enormous hit as a result of a Hard Brexit, which will have a hugely detrimental impact on sick and disabled people who rely on the NHS and carers.

Brexit poses a distinct threat to Scotland’s environmental standards, and health and safety protocols. The First Minister has been clear that any threat to Scotland’s distinctive and ambitious approach to environmental standards and climate change is “completely unacceptable”. The best way to achieve our environmental ambitions is to ensure Scotland’s devolved powers continue to be respected. This must be our first priority. Scotland has more ambitious policies in a number of areas than other parts of the UK, and distinct regulatory approaches even within EU common frameworks. Scotland must retain powers to meet or exceed EU (and international) standards in order to protect our environment and avoid non-tariff barriers to trade.

The latest Oil and Gas UK report makes clear that Brexit will have a significant impact on the industry. It has warned of the impact on the oil and gas sector in terms of frictionless access to goods and services. It also warned the UK Government’s Brexit plans could cause a “skills shortage” for vital North Sea services such as Emergency Response and Rescue Vehicles. Oil & Gas UK have called on the UK Government to use negotiations to:

Protect energy trading and the internal energy market
Maintain a strong voice in Europe for the industry
Minimise friction in access to markets and labour.

The SNP is clear that the best way to achieve these goals is to protect Scotland’s Place in the Single Market and Customs Union.

The SNPs compromise of maintaining membership of the single market and customs union is also integral to the future prosperity of those working within the food sector. Currently seven of the top ten countries receiving UK food exports are EU countries. If food standards are to be relaxed below current EU regulations then such exports will be threatened. The UK needs to be able to demonstrate to both domestic consumers and potential overseas trading partners that it is maintaining a strong and rigorous regulatory regime. Any weakening of food standards at this juncture could threaten the future of the UK’s food trade with the EU, as the EU insists that its trading partners meet its standards.

Moreover, food security post Brexit is also at risk as the Draft Withdrawal Agreement does not provide clarity on its proposed migration policy and does not take account of the contributions that non-UK citizens of the EU are making to the quantity and quality of the UK’s food supply and services as it only addresses this with regard to those immigrants who are already in the UK and have been here for at least five years. The Tory government is neglecting businesses in the food industry. They must heed the advice of the SNP and maintain membership of the single market and customs union to ensure that food standards are not traded away in an attempt to make up for the economic loss as a result of Brexit.

Updated 10 January 2019