THE UK Government’s uncertainty over Brexit is a “major concern” for Scottish businesses, according to a new report.
Businesses and trade associations consulted in the EY study highlighted the risks Brexit posed to their competitiveness, profitability and, in some cases, their viability.
They also warned of the risk of higher consumer prices, particularly for food, drink and energy, from short-term currency risks and from tariffs and border disruptions.
Two-thirds of the 80 participants were not confident that a Brexit deal would be secured by March.
Almost a fifth (18%) of businesses said they did not feel ready for Brexit at all, although the majority (74%) said that they had taken steps to prepare. Only 8% said they felt fully ready for Brexit.
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Scotland’s Finance and Economy Secretary Derek Mackay called on the UK Government to rule out a no-deal Brexit which he said would have “devastating consequences”.
He said: “This report demonstrates the costs to Scotland of a Brexit we did not vote for and demonstrates why a no-deal Brexit must immediately be taken off the table by the UK Government.
“It captures the authentic voice of Scottish business and offers further evidence of the severe and disproportionate impacts that a no-deal outcome would have in Scotland.
“Many businesses highlighted the risks to their competitiveness and profitability, some were worried about future viability and a number are already reporting negative impacts on investment, the costs associated with planning for Brexit and recruitment of staff.”
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Scottish firms also raised concerns that Brexit would reduce access to talent at all wage and skill levels, with the food and drink, financial services, life sciences and creative sectors particularly affected.
The report outlined further fears that tariffs and non-tariff barriers will disrupt the frictionless and tariff-free movement of goods.
Hear what The National editor Callum Baird and columnist Paul Kavanagh (the Wee Ginger Dug) have to say on this week's political developments ...
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