Staying in single market ‘only option’
Leader warns of risk to Scotland
Keeping the UK within the single market is the “only option that makes sense” if Brexit is to go ahead, Scottish First Minister Nicola Sturgeon said, as she published a new report which claimed leaving the European Union (EU) without a deal could wipe £12.7 billion a year from Scotland’s economy.
KEEPING THE UK within the single market is the “only option that makes sense” if Brexit is to go ahead, Nicola Sturgeon said, as she published a new report which claimed leaving the European Union (EU) without a deal could wipe £12.7 billion a year from Scotland’s economy.
If the UK were forced to revert to World Trade Organisation (WTO) rules to govern relationships with Europe, Scotland’s GDP would be 8.5 per cent lower by 2030 – the equivalent of about £2,300 for every person living north of the border, according to the research.
Over the same period, real disposable income would fall by 9.6 per cent while investment in business could be 10.2 per cent lower.
The figures, in a new report from the Scottish Government on the impact of different Brexit outcomes, present “new evidence of the importance of single market membership”, Ms Sturgeon said yesterday.
The First Minister claimed the research was “more detailed and extensive than anything so far provided by the UK Government”, adding it showed keeping Britain in the single market after leaving the EU to be “the least damaging option by far”.
Under this scenario, GDP would fall 2.7 per cent by 2030 – the equivalent to £4bn or just under £700 per head of population – according to the research.
Meanwhile, disposable income would go down by 1.4 per cent, with business investment expected to be just under three per cent lower.
Ms Sturgeon said: “It is clear from these figures that staying in the single market does not insulate us from the costs of leaving the EU but it will minimise those costs. Indeed, compared to a hard Brexit, staying in the single market will benefit us to the tune of £1,600 per head.”
Speaking in Edinburgh, the First Minister insisted: “If Brexit is to proceed, staying in the single market is the only option that makes sense.”
The paper was published as the SNP and other opposition parties ramped up their campaign against a so-called hard Brexit, with Labour facing pressure to join.
Ms Sturgeon insisted it is “time now to make that case for continued membership of the single market even more loudly than before” as she criticised Jeremy Corbyn for his stance.
The UK Labour leader said on Sunday that being in “the single market is dependent on membership of the European Union’’.
Some Tories support a “softer Brexit” with the UK staying in the single market, Ms Sturgeon said, adding there could be majority support for this across the UK.
Prime Minister Theresa May’s official spokesman said: “The Prime Minister has made clear her commitment to getting a good deal which serves the interests of all parts of the United Kingdom, and that we are confident of doing so.
“We have been clear that we are carrying out extensive preparations in relation to delivering Brexit and the will of the British people.”
Scottish Secretary David Mundell said the figures in the new report “fail to acknowledge that above all we need to avoid anything that might fracture the vital UK internal market, which is worth around £48 billion to the Scottish economy – or four times more than trade with the EU”.
The Conservative added: “They also do not recognise that we’re seeking a new deep and special economic partnership with the EU that works for Scotland, and indeed the whole of the UK, and is of greater scope than any existing agreement.
“We urge the Scottish Government to stop their pursuit of a second independence referendum and to work constructively with us to deliver a deal that works for Scotland and the whole UK.”