Portfolio Question Time – in the Scottish Parliament at on 12 June 2024.
James Dornan
Scottish National Party
To ask the Scottish Government what assessment it has made of the impact that Brexit is having on Scotland’s economy. (S6O-03552)
Tom Arthur
Scottish National Party
Scotland’s economy is continuing to suffer from the effects of the United Kingdom’s exit from the European Union, a decision that the Scottish public were strongly against. The latest modelling by the National Institute of Economic and Social Research finds that the UK economy is currently 2.5 per cent smaller than it would have been as an EU member. It is estimated that that figure will rise to 5.7 per cent by 2035.
Businesses continue to feel the difficulty of new trading arrangements. The latest results from the business insights and conditions survey showed that, of the businesses with 10 or more employees in Scotland that faced challenges with exporting, 38.5 per cent named Brexit as the main cause. That figure rose to more than 40 per cent in sectors such as manufacturing, retail and wholesale.
James Dornan
Scottish National Party
The National Audit Office has reported that more than £4.7 billion of public money is forecast to be spent on post-Brexit border arrangements, and His Majesty’s Revenue and Customs has estimated that customs declarations could cost UK businesses around £7 billion every year. Can the Minister provide any update on what assessment the Scottish Government has made of the continued cost of Brexit to the taxpayer and to businesses—unlike both Labour and the Conservatives, who wish to deny that it is happening?
Tom Arthur
Scottish National Party
As outlined, the latest analysis by the NIESR suggests that the UK economy was around 2.5 per cent smaller in 2023 than it would have been under continued EU membership. That means that around £69 billion was wiped from national income in 2023, which equates to £28 billion of tax revenue. In Scotland, that equates to lower public revenues of around £2.3 billion in 2023.
Brexit has also added further fuel to the cost of living crisis. Research by the London School of Economics centre for economic performance suggests that an increase in trade barriers has pushed up average household food costs by £250 since December 2019. Those costs disproportionately impact low-income households, who spend a greater proportion of their income on food.
Question Time is an opportunity for MPs and Members of the House of Lords to ask Government Ministers questions. These questions are asked in the Chamber itself and are known as Oral Questions. Members may also put down Written Questions. In the House of Commons, Question Time takes place for an hour on Mondays, Tuesdays, Wednesdays and Thursdays after Prayers. The different Government Departments answer questions according to a rota and the questions asked must relate to the responsibilities of the Government Department concerned. In the House of Lords up to four questions may be asked of the Government at the beginning of each day's business. They are known as 'starred questions' because they are marked with a star on the Order Paper. Questions may also be asked at the end of each day's business and these may include a short debate. They are known as 'unstarred questions' and are less frequent. Questions in both Houses must be written down in advance and put on the agenda and both Houses have methods for selecting the questions that will be asked. Further information can be obtained from factsheet P1 at the UK Parliament site.
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