Question reference: S5O-00100
- Asked by: James Dornan, MSP for Glasgow Cathcart, Scottish National Party
- Date lodged: 31 August 2016
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Current status: Answered by Derek Mackay on 7 September 2016
Question
To ask the Scottish Government what impact withdrawal from the EU single market could have on Scotland's public finances.
Answer
The Member will be familiar with the paper published last month by the Scottish Government’s Office of the Chief Economic Adviser, which summarised the potential impact that leaving the EU could have on Scotland’s GDP and public spending based on recent studies. For example, Treasury analysis suggests that by 2030 funding for public services could be between £20 billion and £43 billion a year lower under Brexit compared to circumstances where the UK remained in EU.
Looking at direct funding flows, EU funding benefits Scotland significantly, supporting jobs, delivering infrastructure and providing valuable support for the farming and fishing industries. This should have benefited Scotland to the tune of over £5 billion over the life of the current EU budget round (2014-2020) but this is now at significant risk due to the UK Government’s unwillingness to guarantee continuity for all funds.
Whilst the arrangements announced by the Chancellor on 13 August 2016 are to be welcomed, this still leaves around £750 million of funding that remains at risk. It puts at risk significant investment and jobs, revealing the reality of Brexit and demonstrates that the best way to guarantee the jobs, investment, services and projects all over the country which depend on this funding beyond 2020 is by maintaining Scotland's relationship with the EU.