No-deal Brexit to cost Scotland £14bn

By James Ridler contact

- Last updated on GMT

A no-deal Brexit is to cost Scotland £14bn
A no-deal Brexit is to cost Scotland £14bn
A no-deal Brexit could cost Scotland £14bn a year, with the food and drink sector worst affected, the Confederation of British Industry (CBI) has claimed.

The organisation’s review of the Government’s economic analysis found the value of goods and services in the region would fall by 8.1% by 2034, compared with a situation where current arrangements with the EU remained in place.

Commenting on the impact of a no-deal Brexit, one CBI member said: “In the longer-term the company has serious concerns that if the UK becomes a more difficult or expensive place to procure goods from, our rivals in Germany, Italy, Austria and Sweden will all have a competitive advantage over us, regardless of a competitive sterling exchange rate.”

Hit worst

The food and drink industry – the largest manufacturing sector – would be hit the worst, with the value of goods dropping 11%. The loss of access to key non-EU markets through EU trade agreements would mean Scotch whisky – the country’s biggest export – could face import duties of £53m a year to access them.

CBI Scotland director Tracy Black added: “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.

‘Not ready for no-deal’

“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.”

Meanwhile, food and drink manufacturers need to start implementing their no-deal Brexit contingency plans​, legal firm Eversheds has warned, as the threat of a hard exit from the EU draws closer.

Related topics: Business News, Brexit Debate

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