Call for clarity on economic impact of ‘no deal’ Brexit

The UK Government must provide clarity on the economic impact of a ‘no deal’ Brexit to let the Scottish Government plan for the potential consequences, Finance Secretary Derek Mackay has said.

During a meeting with Chief Secretary to the Treasury Rishi Sunak in London today, Mr Mackay will also seek a “cast-iron guarantee” that all EU funding lost to Scotland will be replaced in full by the UK Government.

Mr Mackay said:

“With just weeks to go until we are due to leave the EU, we remain deeply concerned about the impact of a ‘no deal’ Brexit and the severe impact it threatens to have on our economy and jobs, as well as the loss of vital EU funding to Scotland.

“The actions of the UK Government in attempting to shut down Parliament to force through a ‘no-deal’ outcome means that the UK stands on the cusp of an economic crisis. I will be making absolutely clear to the Chief Secretary that the UK Government must stop pursuing a ‘no deal’ Brexit.

“As a responsible government we are continuing to do all we can to stop a ‘no deal’ Brexit. With a ‘no deal’ scenario looking increasingly more likely, it is essential that the UK Government sets out openly and honestly what the economic consequences will be to enable the Scottish Government to prepare for the additional pressures we may face.

“It’s also vital that the UK Government sets out what support they intend to make available for companies who may struggle to survive in a  No Deal situation.  The Scottish Government’s analysis shows 100,000 jobs could be at risk. If the UK Government is determined to take us out of the EU and cause this economic harm, then it must set out what it will do to mediate these impacts.

“I will also press the Chief Secretary to provide a cast-iron guarantee that all EU funding lost will be replaced by the UK Government in full, including supporting our farmers by matching all existing support available through the Common Agricultural Policy and finally passing on the £160 million of convergence funding that has been withheld from Scotland for no reason.”