Uncertainty over Brexit ‘is major concern for Scottish businesses’

BREXIT-RELATED UNCERTAINTY is a “major concern” for Scottish businesses, according to a new report.

Businesses and trade associations consulted in the EY study highlighted the risks Brexit posed to their competitiveness, profitability and, in some cases, their viability. They also warned of the risk of higher consumer prices, particularly for food, drink and energy, from short-term currency risks and from tariffs and border disruptions.

Two-thirds of the 80 participants were not confident that the UK would secure a Brexit deal by March. Almost a fifth of businesses said they did not feel ready for Brexit at all, although the majority said that they had taken steps to prepare. Only eight per cent said they felt fully ready for Brexit.

Scotland’s Finance and Economy Secretary Derek Mackay called on the UK Government to rule out a no-deal Brexit which he said would have “devastating consequences”.

He said: “This report demonstrates the costs to Scotland of a Brexit we did not vote for and demonstrates why a no-deal Brexit must immediately be taken off the table by the UK Government. It captures the authentic voice of Scottish business and offers further evidence of the severe and disproportionate impacts that a no-deal outcome would have in Scotland.

“On top of the damage it is clearly causing to Scottish businesses, Brexit, in whatever form, will cost jobs, make people poorer, damage our society and undermine the democratic decision of the people of Scotland to remain in the European Union.”