Fresh warning that Brexit poses threat to Tayside fruit industry

ECONOMY: Fear of rising labour costs as access to EU worker numbers put at risk

A partner in Scotland’s largest independent accountancy firm which has offices in Forfar and Perth has raised concerns about the potential impact of Brexit on the Tayside berrypicking industry.

Matt Henderson, who is head of restructuring at Johnston Carmichael, said divorce from the European Union was increasingly raising concerns among companies with the situation likely to be compounded if and when restrictions on freedom of movement are imposed.

Mr Henderson said: “There is a heavy reliance on the availability of labour in a number of key industries in Scotland – you only have to look at berrypicking in agriculture, and at Scotland’s licensed, leisure and hospitality sector to see the potential impact.

“Care homes and other healthcare providers in Scotland are also heavily dependent on access to labour from the EU.

“Companies already trying to control their financial commitments and increase their margins are facing an expected increase in the cost of labour.

“The introduction of the National Living Wage alongside rising minimum wage levels mean tight margins will get even tighter, and this will affect many sectors of Scotland’s economy.

“When the restrictions on movement of people from the EU hits, attracting and retaining people from a limited skilled workforce in the country will be key to survival for everyone, and at that point wage competition will only continue to increase.”

There is a heavy reliance on the availability of labour