Brexit (Impact on Economy)

Part of the debate – in the Scottish Parliament on 22nd June 2022.

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Photo of Ivan McKee Ivan McKee Scottish National Party

We know that Brexit is contributing to the 19th consecutive monthly rise in prices that are charged by businesses in Scotland, and it is causing United Kingdom food prices to increase by more than 6 per cent, which hits the poorest families hardest.

According to the Organisation for Economic Co-operation and Development, next year the UK will have the lowest growth in the G20, apart from Russia, and the Office for Budget Responsibility forecasts that, in the long run, Brexit will hurt productivity growth by twice as much as the pandemic.

Since 2019, goods exports have fallen by 20 per cent, largely driven by a decline in oil and gas exports, which amounts to a fall in goods trade with the European Union of 16 per cent, whereas trade with non-EU countries dropped by only 4 per cent. That said, Scotland’s exports are still outperforming the UK’s. Excluding oil and gas, exports to all countries from Scotland last year were down 1 per cent on 2019 levels compared with a fall of 8 per cent for the UK as a whole.

Even as Scotland tries to cope with the fallout of a reckless hard Brexit, the UK Government is risking a trade war with the EU over the Northern Ireland protocol.