CBI urges compromise
Scottish economy facing £14bn wipeout under No Deal
Tracy Black: ‘we must see compromise’ (pic: Terry Murden DB Media Services)
A ‘no deal’ Brexit would cause the Scottish economy to shrink by 8% or £14 billion a year, according to fresh analysis of government figures by the CBI.
The study reveals how Scotland could be among the most significantly exposed to the economic fallout from leaving the EU without a deal.
The forecast loss by 2034 is more than the annual public spending on hospitals, GP surgeries and other health services in Scotland. Such a significant shortfall would hit jobs, livelihoods and living standards.
Manufacturing activity and the agri-food sector are likely to be severely impacted as they are particularly exposed to the risk of higher tariffs and trade costs.
With nearly half of Scottish goods exports going to the EU, any increased trade friction, added costs or delays would hit the region particularly hard.
Tracy Black, CBI Scotland director, said: “CBI Scotland members are clear: if the new approach to finding a Brexit deal continues to be a game of who blinks first, the whole economy will pay the price.
“The deadlock will only be broken by a genuine attempt by all politicians to find consensus and compromise, not stick to rusting red lines and political conditions. Scotland is not – and cannot be – ready for no deal.
“The projected impact on our economy would be devastating and while business will do all it can to reduce some of the worst aspects, a no deal scenario is unmanageable.
“The message from CBI Scotland to our politicians is clear – we must see compromise or the whole country faces the unforgivable prospect of a disorderly Brexit which will affect jobs and livelihoods in Scotland for decades to come.
“It’s time to put prosperity before party politics and dogma.”