Dealing with a losing hand

The UK, along with most of the developed world, is facing the worst economic crisis since the war as a result of the Covid-19 pandemic.

Thousands of businesses have been forced into virtual hibernation for the last nine months, with the end still a long way off.

Hundreds of thousands of Scottish jobs are likely to be lost and future generations will be saddled with crushing levels of debt.

Government interventions such as the job retention scheme have meant the worst of the pain hasn’t even begun to filter through.

Against this backdrop crashing out of the Brexit transition period without a deal on December 31 would be like getting hit by a bus, coming around, and shooting yourself in both feet.

The UK Government’s own Off ice for Budget Responsibility has said no deal could wipe two per cent off UK output.

And it is the very industries that have avoided the worst of the fall-out from Covid which stand to suffer the most.

So while hospitality, travel and arts and entertainment are on their knees, we would also throw manufacturing, exports and business services under the bus.

James Withers, the chief executive of Scotland Food and Drink, has warned of a “living nightmare” which could cost his sector alone £2billion.

The main sticking points in reaching a deal with the EU are over fishing rights, Northern Ireland, and the extent to which the UK would be tied to EU regulations.

It is easy to see this from both sides. On one hand, it is perfectly understandable for Boris Johnson to argued no British Prime Minister could give up sovereignty to the European Court of Justice.

At the same time, it is reasonable for the EU to point out that if you want all the benefits of the single market, you need to follow the rules of the club.

The only thing that is sure about no deal is that everyone loses.

Even the most committed Brexiteers must be wondering whether this is really the best time to tear up our most valuable trading relationships.