– in the Scottish Parliament at on 27 September 2023.
4. To ask the Scottish Government whether it will provide an update on when the next set of export statistics will be published. (S6O-02555)
“Export statistics Scotland” provides the official estimates of the value of Scotland’s exports, and it covers Scotland’s exports of goods and services—excluding oil and gas—internationally and to the rest of the United Kingdom. The next set of statistics will be published on 29 November 2023 and will include data up to 2021. That was pre-announced by the chief statistician in August.
His Majesty’s Revenue and Customs regional trade in goods statistics, which include figures for Scotland, are released quarterly, with the next update, for the third quarter of 2023, due to be released on 14 December. The Scottish Government publishes quarterly manufacturing export statistics for Scotland, with the most recent data covering the period up to quarter 2 in 2023.
The latest set of export statistics were published in December 2021, so there has been a long gap since then. Those statistics showed that Scottish exports to the European Union accounted for 19 per cent of total exports and that we exported three times more—60 per cent of the total—to the rest of the UK. Does that not demonstrate the folly of seeking to align ourselves with the EU at the expense of aligning with the rest of the UK, which is by far the largest market for Scottish exporters?
For the sake of jobs in Scotland and of the Scottish economy, t he Scottish Government should be increasing our exports to the rest of the UK and to the rest of the world, including the European Union. Exports to the European Union have, of course, suffered as a result of Brexit, which we did not vote for and which was imposed on Scotland by the rest of the UK. Brexit has led to a decline in many key exports to the European Union. If Scotland were to be a member of the European Union in its own right, that would open up lots of export opportunities for Scotland.
Our exports are performing extremely well. We should congratulate our businesses on that and be proud of it.
Will the
minister provide an update on the continued impact that export barriers caused by Brexit are having on business costs?
The latest business insights and conditions survey, which was published in September, shows that, of the businesses in Scotland that face exporting challenges, more than a third—36.1 per cent, to be precise—named Brexit as the main cause. The survey found that more than a quarter of Scottish businesses face extra costs as a result of Brexit, with 16.2 per cent facing higher transportation costs and 12.5 per cent facing increased red tape.
Furthermore, the latest small business survey, which was conducted between November 2022 and April 2023, reported that half of the small and medium-sized employers in Scotland that predicted a decrease in turnover next year highlighted Brexit as a contributing factor.
The additional barriers and costs of Brexit continue to weigh on the economy as a whole. The Office for Budget Responsibility estimates that UK gross domestic product will be 4 per cent lower in the long run due to Brexit. In Scotland, we have experienced a 38 per cent decline in exports of fruit and veg to Europe and a 45 per cent fall in exports of animal feed to Europe.
One side talks down trade with the United Kingdom and the other side talks down trade with Europe. Instead of revelling in the prospect of new trade opportunities, why do both Governments not work together to break down trade barriers?
We will, of course, continue to do our best to break down trade barriers. That is why we oppose Brexit. I believe that Mr Rennie’s party also opposed Brexit, although, unfortunately, it appears to have changed its mind because of views in the rest of the UK, irrespective of the damage to Scotland.
As I said before, our strategy is to increase exports to the rest of the UK—we do a lot of work in London, for instance, to promote Scottish exports—the European Union and the rest of the world, and that is the best outcome for Scotland’s economy.
The minister will be aware that, in the period since Brexit, Scottish exports, excluding oil and gas, have grown at around twice the rate of exports from the rest of the UK but that UK export growth as a whole has been lagging behind international competitors. Does the minister agree that that demonstrates the folly of Brexit but also confirms the approach of the Scottish Government, which has a coherent strategy to boost exports that was agreed with industry and is delivering results?
I absolutely agree with Ivan McKee, and I thank him for his efforts in his previous role to build up Scotland’s fantastic track record in exports. The value of Scotland’s international goods exports increased by 13.2 per cent in the year ending in June 2023, compared with the previous year, which is greater in percentage terms than the 12 per cent increase experienced by the UK. Therefore, the Parliament should celebrate and be proud of the fact that Scotland is outperforming the rest of the UK on exports and, indeed, inward investment. That is really good news for the Scottish Government’s approach, which involves working in partnership with our business community and enterprise agencies, and it is good news for jobs in Scotland.