UK Single Market and Scotland’s Economy

Oral Answers to Questions — Scotland – in the House of Commons at 12:00 am on 1st March 2017.

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Photo of Matthew Offord Matthew Offord Conservative, Hendon 12:00 am, 1st March 2017

What assessment he has made of the importance of the UK single market to Scotland’s economy.

Photo of Maria Caulfield Maria Caulfield Conservative, Lewes

What assessment he has made of the importance of the UK single market to Scotland’s economy.

Photo of David Mundell David Mundell The Secretary of State for Scotland

Sales from Scotland to the rest of the UK are worth nearly £50 billion, a figure that has increased by over 70% since 2002 and that is four times greater than the value of exports from Scotland to the EU. There is no doubt that the United Kingdom is the vital Union for Scotland’s economy.

Photo of Matthew Offord Matthew Offord Conservative, Hendon

Does the Secretary of State agree that we must not create barriers or do anything to impede the functioning of the UK domestic market as we leave the EU, given its vital importance to the economy of Scotland?

Photo of David Mundell David Mundell The Secretary of State for Scotland

I could not agree more with my hon. Friend. I find it strange that those who make such a fuss about the EU single market seem to have a complete disregard for a market that is four times as large to Scotland’s economy.

Photo of Maria Caulfield Maria Caulfield Conservative, Lewes

Given that Scottish whisky is the largest net contributor to the UK’s balance of trade and goods, is the Secretary of State encouraged by the fact that if we move from the single market to World Trade Organisation arrangements, Scottish whisky will have a zero tariff?

Photo of David Mundell David Mundell The Secretary of State for Scotland

It is important to note that there is a zero tariff for Scotch whisky under WTO rules. As to our future relationship with the EU, my right hon. Friend the Prime Minister has made it absolutely clear that we want to negotiate a free trade agreement with the EU, which would be enormously to the benefit of the Scotch whisky industry.

Photo of Pete Wishart Pete Wishart Shadow SNP Westminster Group Leader (Leader of the House of Commons), Chair, Scottish Affairs Committee, Chair, Scottish Affairs Committee

All this UK single market business is quite interesting, but is the Secretary of State trying to suggest that a Brexitised isolated UK, desperate for friends and any trading partners, would not trade with an independent Scotland?

Photo of David Mundell David Mundell The Secretary of State for Scotland

What I am suggesting is that if an independent Scotland were to put up tariffs and barriers with its vital largest trading partner, which provides four times as much economic development as the EU, that would be a disastrous series of events.

Photo of Andrew Turner Andrew Turner Conservative, Isle of Wight

How is job creation in Scotland affecting the Scottish economy?

Photo of David Mundell David Mundell The Secretary of State for Scotland

It is vital that both the UK and the Scottish Governments work together to maximise the number of jobs created, but it is clear that the one thing the Scottish Government could do to help job creation in Scotland most is take the suggestion of a divisive independence referendum off the table.

Photo of Deidre Brock Deidre Brock Shadow SNP Westminster Group Leader (Scottish Parliament/Scottish Government Liaison), Shadow SNP Spokesperson (Devolved Government Relations)

The Secretary of State previously told the Scottish Affairs Committee that he attends Cabinet Brexit meetings based on whether he thinks the agenda items are important to Scotland. Will he tell the House which Brexit policy areas he thinks are important to Scotland and which areas he thinks are not important?

Photo of David Mundell David Mundell The Secretary of State for Scotland

I also made it clear to that Committee that it was not appropriate to give a running commentary on the Government’s internal discussions on Brexit. What I am committed to do is delivering the best possible deal for Scotland in these Brexit negotiations.