Alister Jack calls on all Scottish MPs to back UK-EU trade deal
Secretary of State for Scotland, Alister Jack, has called on all Scottish MPs to support the UK’s historic Free Trade Agreement with the EU when Parliament votes on it this week.
He said: “We have secured a historic Free Trade deal with the EU that delivers for Scotland and the whole of the UK. This is a deep and wide-ranging deal, covering trade, security, travel, transport, energy, health and social security.
“As Parliament prepares to vote on the deal this week, I urge all Scottish MPs to give it their wholehearted support.
“Outside the EU, the UK can sign our own trade deals around the world, bringing new opportunities for exporters and some of Scotland’s most iconic products.
“For our farmers, the deal avoids tariffs on their world-beating Scotch lamb and beef.
“For our fishermen and coastal communities, the deal delivers what we promised.
“We are regaining control of our waters, we are restoring our status as an independent coastal state and, even during the five year adjustment period, there will be a big overall increase in our share of the catch in our waters.
“As we leave the Common Fisheries Policy, our fishermen will also enjoy near-exclusive access to inshore waters up to the historic 12 mile limit.
“The deal is good news for Scotland and I believe it is now time to move on from the Brexit debate and join forces in embracing our exciting future. Whether Leaver or Remainer in 2016 we need to come to together to make the most of our new opportunities.
“The people of Scotland will expect their MPs to do the right thing on Wednesday and vote for the deal. They will not easily forgive those who reject this Free Trade Agreement or throw their weight behind a no deal Brexit.”
As the Scottish Secretary is well aware, SNP MPs will vote against the deal this week. The Tories have a big majority at Westminster, however: the deal will go through – Ed.
Independence only way to regain full benefits of EU membership
The Brexit deal agreed by the UK Government will remove Scotland from the European Single Market – hitting jobs and the economy at the worst possible time, Constitution Secretary Michael Russell has said.
Against its will, and in the middle of a pandemic and economic recession, Scotland is being removed from a market worth £16 billion in exports to Scottish companies – and which by population is seven times the size of the UK – as well as the Customs Union.
The Scottish Government will do all it can to mitigate the worst effects of the deal on businesses and communities.
However, Mr Russell said this “hard Brexit” reinforces why it is so important for people in Scotland to have the right to decide their own future and to regain the full benefits of EU membership as an independent country.
Contingency plans already in place include vital measures to help protect health services, the economy and communities.
However, the UK’s deal will still have a profoundly negative impact on Scotland:
Scottish Government modelling estimates that a deal of the type that appears to have been agreed could cut Scotland’s GDP by around 6.1% (£9 billion in 2016 cash terms) by 2030 compared to EU membership
all goods sectors will face the impact the higher costs of trading with the EU as a result of the additional customs and borders procedures and paperwork. For key service sectors, access to EU markets will be reduced compared to EU membership
extra costs could make Scottish businesses uncompetitive in some markets: manufacturing, food and drink, agriculture and forestry are particularly at risk
lamb and beef exports will be hard hit by the extra costs of exporting to the EU
businesses trying to access UK and EU markets will face additional bureaucracy and costs. For example the seafood sector will require new certificates and changes to business practices to continue to export to the EU
justice and security cooperation will be seriously impacted, with Police Scotland and the Crown Office having to use slower and less effective tools in the fight against crime
reduced EU migration will also have a significant negative impact on the economy, population and wider society and culture. It will increase shortages in key areas like health and social care
Scotland and its students will no longer be able to participate in Erasmus, along with a number of other EU programmes which the UK decided to exclude from the deal. On the key science programme Horizon Europe, while it is included in the deal, the UK government have not made clear the details, including the level of access which will be available.
Scottish fishing industry will see only a fraction of the additional quota promised and the compensation arrangements agreed if the UK Government restricts access to UK waters, means that this is control of UK waters in name only.
Constitution Secretary Michael Russell said: “A no deal outcome has thankfully been avoided but in the midst of a pandemic and economic recession Scotland is now being forced to cope with a hard Brexit in less than one week’s time.
“Leaving the European Single Market and Customs Union would be damaging at any time but in the middle of the current crisis it is unforgiveable and completely unnecessary.
“We are doing everything we can to mitigate against the consequences of the UK Government’s actions.
“Measures are being taken to protect trade and critical supply chains, to reduce the risks of disruption of goods and people crossing borders and to provide Scottish businesses with the vital advice and information they need to continue operating effectively after 31 December.
“We are also working with UK administrations to ensure patients get the medicines and medical supplies needed and we are also confident that the flow of vaccines will be protected.
“Throughout this entire Brexit process the Scottish Government has sought to engage constructively with the UK Government on preparedness and we will continue, as we always have done, to advocate for the interests of Scottish businesses and of Scottish people whenever possible, but we simply cannot avert every negative outcome.
“People in Scotland voted overwhelmingly to remain in the EU and have the right to determine their own future rather than face the long-term damage of a hard Brexit.
“Scotland is at heart a European nation, and shares it values. The UK Government has ignored our calls for a continuing close relationship with the EU and it is clearer than ever that the only way to regain the benefits of EU membership is for Scotland to become an independent country.”
Refreshed advice, guidance and support to help all Scottish businesses be ready for the end of transition is available on the Prepare for Brexit website – www.prepareforbrexit.scot, including the EU Exit Helpline, self-help checklist, webinars, articles and newsletters.
Seven days before Britain was due to crash out of the European Union, a deal has been agreed:
Prime Minister Boris Johnson said: It is four and a half years since the British people voted to take back control of their money, their borders, their laws, and their waters and to leave the European Union.
And earlier this year we fulfilled that promise and we left on Jan 31 with that oven-ready deal.
Since that time we have been getting on with our agenda.
Enacting the points based immigration system that you voted for and that will come into force on Jan 1.
And doing free trade deals with 58 countries around the world.
And preparing the new relationship with the EU.
And there have been plenty of people who have told us that the challenges of the Covid pandemic have made this work impossible.
And that we should extend the transition period.
And incur yet more delay.
And I rejected that approach precisely because beating Covid is our number one national priority and I wanted to end any extra uncertainty and to give this country the best possible chance of bouncing back strongly next year.
And so I am very pleased that this afternoon that we have completed the biggest trade deal yet, worth £660 billion.
A comprehensive Canada style free trade deal between the UK and the EU, a deal that will protect jobs across this country.
A deal that will allow UK goods and components to be sold without tariffs and without quotas in the EU market.
A deal which will if anything should allow our companies and our exporters to do even more business with our European friends.
And yet which achieves something that the people of this country instinctively knew was do-able.
But which they were told was impossible.
We have taken back control of laws and our destiny.
We have taken back control of laws and our destiny. We have taken back control of every jot and tittle of our regulation. In a way that is complete and unfettered.
From Jan 1 we are outside the customs union, and outside the single market.
British laws will be made solely by the British Parliament.
Interpreted by UK judges sitting in UK courts.
And the jurisdiction of the European Court of Justice will come to an end.
We will be able to set our own standards, to innovate in the way that we want, to originate new frameworks for the sectors in which this country leads the world, from biosciences to financial services, artificial intelligence and beyond.
We will be able to decide how and where we are going to stimulate new jobs and new hope.
With freeports and new green industrial zones.
We will be able to cherish our landscape and our environment in the way we choose.
Backing our farmers and backing British food and agricultural production.
And for the first time since 1973 we will be an independent coastal state with full control of our waters with the UK’s share of fish in our waters rising substantially from roughly half today to closer to 2/3 in five and a half years’ time after which there is no theoretical limit beyond those placed by science or conservation on the quantity of our own fish that we can fish in our waters.
And to get ready for that moment those fishing communities we will be helped with a big £100m programme to modernise their fleets and the fish processing industry.
And I want to stress that although of course the arguments with our European friends and partners were sometimes fierce this is, I believe a good deal for the whole of Europe and for our friends and partners as well.
Because it will not be a bad thing for the EU to have a prosperous and dynamic and contented UK on your doorstep.
And it will be a good thing – it will drive jobs and prosperity across the whole continent.
And I don’t think it will be a bad thing if we in the UK do things differently, or a take a different approach to legislation.
Because in so many ways our basic goals are the same.
And in the context of this giant free trade zone that we’re jointly creating the stimulus of regulatory competition will I think benefit us both.
And if one side believes it is somehow being unfairly undercut by the other, then subject to independent third party arbitration and provided the measures are proportionate, we can either of us decide – as sovereign equals – to protect our consumers.
But this treaty explicitly envisages that such action should only happen infrequently and the concepts of uniformity and harmonisation are banished in favour of mutual respect and mutual recognition and free trade.
And for squaring that circle, for finding the philosopher’s stone that’s enabled us to do this I want to thank President von der Leyen of the European Commission and our brilliant negotiators led by Lord Frost and Michel Barnier, on the EU side Stephanie Rousseau as well as Oliver Lewis, Tim Barrow, Lindsay Appleby and many others.
Their work will be available for scrutiny, followed by a parliamentary vote I hope on Dec 30.
This agreement, this deal above all means certainty.
It means certainty for the aviation industry and the hauliers who have suffered so much in the Covid pandemic.
It means certainty for the police and the border forces and the security services and all those that we rely on across Europe to keep us safe.
It means certainty for our scientists who will be able to continue to work together on great collective projects.
Because although we want the UK to be a science superpower, we also want to be a collaborative science superpower.
And above all it means certainty for business from financial services to our world-leading manufacturers – our car industry – certainty for those working in high skilled jobs in firms and factories across the whole country.
Because there will be no palisade of tariffs on Jan 1.
And there will be no non-tariff barriers to trade.
And instead there will be a giant free trade zone of which we will at once be a member.
And at the same time be able to do our own free trade deals as one UK, whole and entire, England, NI, Scotland and Wales together.
And I should stress this deal was done by a huge negotiating team from every part of the UK, and it will benefit every part of our United Kingdom, helping to unite and level up across the country.
And so I say again directly to our EU friends and partners, I think this deal means a new stability and a new certainty in what has sometimes been a fractious and difficult relationship.
We will be your friend, your ally, your supporter and indeed – never let it be forgotten – your number one market.
Because although we have left the EU this country will remain culturally, emotionally, historically, strategically and geologically attached to Europe, not least through the four million EU nationals who have requested to settle in the UK over the last four years and who make an enormous contribution to our country and to our lives.
And I say to all of you at home.
At the end of this toughest of years.
That our focus in the weeks ahead is of course on defeating the pandemic.
And on beating coronavirus and rebuilding our economy.
And delivering jobs across the country.
And I am utterly confident that we can and will do it.
By today we have vaccinated almost 800,000 people and we have also today resolved a question that has bedevilled our politics for decades.
And it is up to us all together. As a newly and truly independent nation.
To realise the immensity of this moment and to make the most of it.Happy Christmas to you all.
That’s the good news from Brussels – now for the sprouts.
Commenting on today’s announcement of the UK and EU today reaching a deal, Scottish Secretary Alister Jack said: “The UK’s deal with the EU is great news for Scotland’s businesses. There are huge opportunities ahead – not just with this exceptional access to the EU market, but also in new markets right around the world.
“We have an agreement on fisheries which will ensure that our fishermen, and our coastal communities, will flourish outside of the EU’s unfair Common Fisheries Policy. The UK will once more be a sovereign coastal state.
“The deal protects famous Scottish products such as whisky, Arbroath Smokies and Orkney cheddar.
“People in Scotland will benefit from a wide range of social security and healthcare rights while travelling, working and living in the EU.
“Now, Scottish businesses need to get ready. The UK Government has been preparing intensively, and working with businesses, and that will continue. The Scottish Government also needs to do its bit and take action in devolved areas – we have given the Scottish Government nearly £200 million to prepare for Brexit.
“The United Kingdom will always be a welcoming, outwards-facing nation. Our European neighbours are our friends, and that will not change. EU citizens will continue to be an important part of many of Scotland’s communities. This is a historic moment for us all.
“There are enormous opportunities ahead of us, and we all need to make the most of them.”
The UK remains a trusted partner. We will stand shoulder to shoulder to deliver on our common global goals.
But now let's turn the page and look to the future.
To all Europeans I say: it is time to leave Brexit behind.
EU President Ursula von der Leyen said: “We have, finally, found an agreement. It was a long and winding road. But we have got a good deal to show for it.
It is fair and balanced. And it is the right and responsible thing to do for both sides.
The negotiations were very tough. But with so much at stake, for so many, this was a deal worth fighting for.
We need to avoid major disruptions for workers, companies and travellers after 1 January 2020.
It will protect European interests.
It is also – I believe – in the UK’s interests.
It will lay a solid foundation for a new beginning with a long-term friend. And it means that we can finally put Brexit behind us.
Europe will be able to move on.
Throughout this period, the European Union has demonstrated great unity, drawing on the strength of 450 million people and the largest single market in the world.
The Agreement we have reached clearly shows how much this matters.
Chapter by chapter, line by line.
Let me give you three examples:
First: Competition in our Single Market will be fair and remain so.
The EU´s rules and standards will be respected.
We have effective tools to react if fair competition is distorted and impacts our trade.
Secondly: We will continue cooperating with the UK, in all areas of mutual interest.
For example in the fields of climate change, energy, security and transport.
Together we still achieve more than we do apart.
And thirdly: We have secured five and a half years of full predictability for our fishing communities and strong tools to incentivise it to remain so.
Of course, this whole debate has always been about sovereignty.
But we should cut through the soundbites and ask ourselves what sovereignty actually means in the 21st century.
For me, it is about being able to seamlessly do work, travel, study and do business in 27 countries.
It is about pooling our strength and speaking together in a world full of great powers.
And in a time of crisis it is about pulling each other up – instead of trying to get back to your feet alone.
The European Union shows how this works in practice.
And no deal in the world can change reality or gravity in today’s economy and today’s world. We are one of the giants.
The EU is well prepared for Brexit.
We know this deal will not stop disruption altogether.
We have been working closely with authorities and businesses to make sure they are ready.
We have set aside EUR 5 billion in our new budget to support all of the people, regions and sectors affected by Brexit.
So now is the time to turn the page and look to the future.
The United Kingdom is a third country. But it remains a trusted partner. We are long standing allies. We share the same values and interests.
Whether it be the COP26 summit in Glasgow or the upcoming UK G7 and Italian G20 presidencies:
The European Union and the United Kingdom will stand shoulder to shoulder to deliver on our common global goals.
This moment marks the end of a long journey.
I would like to thank our Chief Negotiator, Michel Barnier, and his team, and Stéphanie Riso for their tireless efforts, their endurance, their professionalism.
I also want to thank David Frost and Tim Barrow for having been tough but fair negotiating partners.
And I am grateful to all our Member States and the European Parliament for their trust and their support. I will now convene the College.
Ladies and Gentlemen, at the end of successful negotiations I normally feel joy. But today I only feel quiet satisfaction and, frankly speaking, relief.
I know this is a difficult day for some.
And to our friends in the United Kingdom I want to say: parting is such sweet sorrow.
But to use a line from TS Eliot: What we call the beginning is often the end. And to make an end is to make a beginning.
So to all Europeans I say: It is time to leave Brexit behind. Our future is made in Europe.
Thank you so much.
Scotland’s First Minister Nicola Sturgeon said in a statement: “It beggars belief that in the midst of a pandemic and economic recession Scotland has been forced out of the EU Single Market and Customs Union with all the damage to jobs that will bring.
“A deal is better than no deal. But, just because, at the eleventh hour, the UK Government has decided to abandon the idea of a no-deal outcome, it should not distract from the fact that they have chosen a hard Brexit, stripping away so many of the benefits of EU membership.
“And while we do not yet have full details on the nature of the deal, it appears major promises made by the UK Government on fisheries have been broken and the extent of these broken promises will become apparent to all very soon.
“People in Scotland voted overwhelmingly to remain in the EU, but their views have been ignored.
“This is a far harder Brexit than could have been imagined when the EU referendum took place, damaging and disrupting this nation’s economy and society at the worst possible time.
“We are doing everything we can to mitigate against the consequences of the UK Government’s actions – but we cannot avert every negative outcome.
“We know that businesses are already struggling under the burden of COVID-19, and are now faced with the need to prepare for this hard Brexit in little more than a week’s time. We will do all we can to help them and are issuing updated information and advice and urge those most affected, including businesses, to prepare.
“Scotland did not vote for any of this and our position is clearer than ever. Scotland now has the right to choose its own future as an independent country and once more regain the benefits of EU membership.”
Rocio Concha, Director of Policy and Advocacy at Which?, said: ““The news of a deal means that consumers can breathe a sigh of relief, as they will avoid the cost of a no-deal Brexit to their pockets and their consumer rights.
“Crucially, the announcement that people will continue to benefit from zero tariffs on goods from the EU is positive for consumers, as many will be keeping a close eye on their finances heading into the new year.
“Even with a deal, people may still see fundamental changes compared to what they have been used to. We will be closely scrutinising the details of the deal when it is published to establish the true implications for consumers and continuing to provide advice to help people navigate this new landscape.”
There has been much posturing, many false dawns and plenty manufactured fury over the last many months concerning the negotiation of a deal (or not) to govern the UK’s trade with the world’s biggest and most integrated market which just happens to be on our doorstep, the EU.
But whether it’s a Deal or No Deal, future trading with what is easily our biggest trading partner will become much more difficult following the end of Transition on 31 January. Even the Bank of England, not known for expressing extreme opinions, has said that the hit to the UK economy over the medium term will be worse than that caused by the Covid pandemic.
The damage has already been done. For some, that is a price worth paying but not for the majority of Scots, and not, if the polls are to be believed, for the majority across the UK either now.
But regardless, the damage is done. That is the real point. The UK is out of the EU. Relationships have been damaged in the process, and not just trading relationships. The locks on the doors are about to be changed. The weather is growing colder while the UK is outside and is no longer trusted by those who might once have given shelter.
So where do we go from here? How do we rebuild? Well a reasonable place to start might be to better understand what others think about us after all the recent sound and fury. Plenty of uninformed opinion is thrown about every night on TV by “spokesmen” who see mainly an opportunity to further their particular agendas.
Is it time to hear from some non-politicians? Real people who live in European cities and who know what is going on in their respective countries?
The European Movement in Scotland certainly thinks so and is organising a webinar on 14th December with experts from Rome, Berlin, Brussels and Edinburgh to explore how Europeans now think about the UK and Scotland.
Scotland’s youth work sector could miss out on more than £1 million of annual European funding due to Brexit.
That’s the amount of support currently received every year by the sector from the Erasmus+ international exchange programme, Scotland’s participation in which is now in jeopardy with less than a month to go until the end of the transition period.
The Scottish Government has sought repeated assurance that the UK Government will prioritise continued association to the programme, and, if the UK Government fails in its negotiations to secure access, that any replacement scheme will provide funding on a par with the amounts historically secured under Erasmus+ and that all those who currently benefit from the programme will be supported.
Further and Higher Education Minister Richard Lochhead has highlighted the urgency of a decision between Devolved Administration counterparts and Michelle Donelan, UK Minister of State for Universities.
Mr Lochhead said: “Scotland’s vibrant youth work sector supports children and young people’s well-being and helps close the attainment gap. Throughout the COVID-19 pandemic we have seen the sector rise to the challenge of providing services remotely, supporting some of our most vulnerable young people.
“If, as we expect, EU funding for youth work projects and youth exchanges are no longer available to the Scottish sector, the contribution of youth work to enhancing young people’s capacity for social and cultural connectedness and for understanding and accepting difference could be clearly impacted.
“I was fortunate enough to see the benefits of Erasmus+ first hand earlier this year, when I visited the Royston Youth Action project in the north of Glasgow.
“The impact of participating in international exchanges with young people from Estonia, Finland and Austria had been life-changing for them. Some of the young people had never had a passport, let alone the opportunity to travel abroad before. The Erasmus exchange experience has resulted in a lasting partnership between the participants which endures to this day.
“Research shows those in Scotland with fewer opportunities participating in Erasmus+ report a significantly higher effect when compared with young people who face fewer barriers. And those who study or train abroad are twice as likely to find employment quickly. Losing out to Erasmus+ would be a significant blow to many, and not just financially.”
One of Scotland’s major recipients of Erasmus+ support has been YouthLink Scotland, the national agency for youth work.
YouthLink CEO Tim Frew said: “It is disappointing to see no money for youth work has been allocated to the UK Spending Review, in terms of any potential domestic alternative to the Erasmus+ programme. We hope this is not a signal from the UK Government that these opportunities for some of our most disadvantaged young people are to end.
“Erasmus+ has provided significant transformative and life-changing opportunities for young people, many of whom are furthest away from mainstream opportunities. Whether it’s employability programmes, work on gender-based violence or environmental sustainability, the opportunity to visit, work with and learn from our European counterparts cannot be underestimated.
“We would like to see the Prime Minister make a commitment to the continuation of Erasmus+, a programme that already involves non-EU members, including Iceland and Norway. If youth work participation in either Erasmus+ or any domestic alternative, is no longer open to us, these opportunities will be lost for young people for generations to come.”
The Erasmus+ programme facilitates the mobility of individuals across Europe, be that for learning, teaching, or working, by financing individual exchanges from higher education, adult education, vocational education and training, youth work, schools and sport.
Scotland attracts proportionally more Erasmus+ participants from across Europe – and sends more in the other direction – than any other country in the UK.
Between 2014 and 2018 Scottish institutions and organisations secured more than 90 million euros in Erasmus+ funding with more than 80 youth work projects benefitting from around £4.4 million. With the sector estimated to deliver at least £7 in value for every £1 it costs in public cash, its value to the economy has been estimated to be worth nearly £34 million since 2014.
Recently the European Commission confirmed a 60% increase to the programme’s budget, which is now sitting at over 23 billion euros.
Scottish Government funding for youth work is being increased more than 30% this year to recognise the vital role the sector will play in making up any ground lost in learning during the coronavirus (COVID-19) pandemic.
A newly created £3 million Youth Work Education Recovery Fund – administered by YouthLink Scotland – is being targeted at those communities and young people who need the most support, bringing Government spending in the youth work sector this year to at least £12.5 million.
Recent findings show three-quarters of Scottish students who take part in Erasmus+ receive a first- or upper second-class degree, compared with 60% of those who did not study or train abroad.
Students who did an Erasmus placement are 50% less likely to experience long-term unemployment, and participants in vocational education and training have a higher employment rate (81% vs 68%) three years after the end of their stay abroad.
Commissioned by YouthLink Scotland, Hall Aitken (2016) estimated the social return on investment in youth work contributes between £656 million and £2 billion to the Scottish economy every year and shows a return of £7 for every £1 of public cash.
The UK Government has declined to give evidence to the Scottish Parliament on its UK Internal Market Bill.
The UK Government says it regrets that Secretary of State for Business, Energy and Industrial Strategy, Alok Sharma MP (above) will not be able to appear before Holyrood’s Finance and Constitution Committee on account of the “tight legislative timeline” for the Bill that is currently going through Westminster.
Finance & Constitution Committee Convener Bruce Crawford MSP says he is ‘dismayed’ by the declined invitation.
The UK Government acknowledges “all aspects” of the Internal Market Bill will require the legislative consent of the Scottish Parliament.
Finance & Constitution Committee Convener Bruce Crawford MSP said:“The UK Internal Market Bill will affect many people’s lives and livelihoods in Scotland. It will also have a profound impact on the devolution settlement and on the powers of the Scottish Parliament.
“The UK Government already recognises and accepts that all aspects of this Bill require the legislative consent of the Scottish Parliament.
“I am genuinely dismayed, therefore, that the Secretary of State for Business will not make time to give evidence to our committee, as we consider whether or not to recommend that consent be given to this UK Bill.
“Our report to the Scottish Parliament will not have the benefit of direct evidence from the UK Government and that is a matter of regret, as is the discourtesy that colleagues will infer from the UK Government’s response.”
Mr Crawford added: “Under my convenership, this committee has always set out to engage constructively with the UK Government. Indeed, we will hear from Mr Hands on the Trade Bill next week.
“It is implausible why a UK Minister is available for the relatively limited impact on devolution of that Bill, while not being available for the Internal Market Bill which has a potentially huge impact on the people of Scotland.”
The text of the email from Mr Sharma’s office is below.
The declined request cites the Bill’s “tight legislative timeline”, which was set by the UK Government.
Full text of email dated 15 September 2020:
Hi (Name of Clerk to Committee),
Apologies for the delay and thank you for your invitation for the SoS to give evidence to the committee. Given the tight legislative timeline for the Bill, it is with regret that the SoS will be unable to attend this committee session. We look forward to the findings of the Committee’s engagement on the UK internal market Bill.
Thanks, (Name of Private Secretary) Office of Secretary of State for Business, Energy and Industrial Strategy, Alok Sharma MP
More on the Committee’s scrutiny of the Internal Market Bill can be found here.
Finance Ministers’ “deep concern” over UK Internal Market Bill
Spending proposals would “reverse devolution”.
Finance Ministers from Scotland, Wales and Northern Ireland have met to discuss a range of fiscal matters and voiced their collective concerns about the financial implications the UK Internal Market Bill will have on devolved governments.
Kate Forbes, Rebecca Evans and Conor Murphy expressed their joint concerns on the spending powers set out in the Bill which override the existing devolution settlement.
The powers enable the UK Government to undertake spending in devolved areas, including for replacement of EU funding, without any engagement with the devolved nations.
Finance Ministers also voiced concerns about what this could mean for future consequential funding arrangements.
Scotland’s Finance Secretary, Kate Forbes said: “It is entirely unacceptable that – with no prior notice – the UK Government has written provisions into the Bill that presume Whitehall control over the delivery of replacements for the EU funding programme in Scotland – a programme that Scottish Ministers have delivered successfully for decades.
“This Bill would also allow the UK Government to dictate how money is spent in devolved areas without the consent of Scottish Ministers. It puts at risk funding for a whole host of capital programmes – schools, hospitals and infrastructure. It reverses the devolution process and we will oppose any attempt to bypass the Scottish Parliament and Government, which are elected by the people of Scotland.
“Not only is it in contravention of the devolution settlement, but it has the potential to create confusion, duplication and unnecessary additional bureaucracy at a time when economic recovery is paramount.”
Welsh Finance Minister Rebecca Evans said: “I am deeply concerned that the Bill gives UK Ministers, for the first time since devolution, powers to fund activity in areas which are clearly devolved to Wales.
“In Wales funding decisions are taken in partnership with local communities, to ensure that they reflect the needs of the people in Wales. The powers set out in the Bill completely undermine devolution and will see decisions currently taken in Wales, clawed back by the UK Government.”
Finance Minister for Northern Ireland, Conor Murphy said: “The Internal Market Bill will give the British Government wide ranging powers to make funding decisions in devolved areas.
“This is greatly concerning and could have huge implications for the Good Friday Agreement. The British Government should not interfere in funding matters which are currently the responsibility of the Devolved Administrations.
“It is also imperative that they provide details on the scope of the Shared Prosperity Fund. This will be a vital source of replacement funding for devolved areas and the lack of meaningful engagement to date is extremely disappointing.”
Bill introduced ‘to protect jobs and trade across the whole of the United Kingdom’
Bill introduced to protect trade and jobs across the UK by preventing new burdens on business when the Transition Period ends
transfer of powers from the EU to the UK government to invest in businesses and communities across Scotland, Wales, and Northern Ireland as we recover from Covid-19
a new independent Office for the Internal Market (OIM) to be set up within the Competition and Markets Authority to monitor the smooth running of trade within the United Kingdom
the Bill will also set out limited and reasonable steps ensure that the government is always able to deliver on its commitments to the people of Northern Ireland
A new Bill to protect jobs and trade across the whole of the United Kingdom after the Transition Period ends will be introduced to Parliament today.
The UK Internal Market Bill will ‘guarantee companies can trade unhindered in every part of the UK as they have done for centuries, ensuring the continued prosperity of people and business across 4 parts of the UK, while maintaining our world-leading high standards for consumers, workers, food, animal welfare and the environment’ says the UK Government – but if enacted the Bill breaks international law.
From 1 January 2021, powers in a range of policy areas previously exercised at an EU level will flow directly to the devolved administrations in Holyrood, Cardiff Bay and Stormont for the first time. This will give the devolved legislatures power over more issues than they have ever had before, including over air quality, energy efficiency of buildings and elements of employment law, without removing any of their current powers.
Once the Transition Period ends, rules that have regulated how each home nation trades with each other over the past 45 years will fall away. Without urgent legislation to preserve the status quo of seamless internal trade, rules and regulations set in Scotland, England, Wales and Northern Ireland could create new barriers to trade between different parts of the UK, unnecessary red tape for business and additional costs for consumers. Data shows that the combined total sales from Scotland, Wales and Northern Ireland to the rest of the United Kingdom were worth over £90 billion in 2018.
The Bill will ‘avoid this uncertainty for business by creating an open, fair, and competitive market across the United Kingdom, ensuring regulations from one part of the country will be recognised in another’. Each devolved administration will still be able to set their own standards as they do now, while also being able to benefit from the trade of businesses based anywhere in the UK. The rules in this bill will also bind the UK government when acting on behalf of England in areas of devolved competence.
Business Secretary Alok Sharma said: “For centuries the UK’s internal market has been the cornerstone of our shared prosperity, delivering unparalleled stability and economic growth across the Union.
“This Bill will protect our highly integrated market by guaranteeing that companies can continue to trade unhindered in every part of the UK after the Transition Period ends and EU law falls away.
“By providing clarity over rules that will govern the UK economy after we take back control of our money and laws, we can increase investment and create new jobs across the United Kingdom, while our maintaining world-leading standards for consumers, workers, food and the environment.
“Without these necessary reforms, the way we trade goods and services between the home nations could be seriously impacted, harming the way we do business within our own borders. Now is not the time to create uncertainty for business with new barriers and additional costs that would trash our chances of an economic recovery.”
The Bill will also enable the UK government to provide financial assistance to Scotland, Wales, and Northern Ireland with new powers to spend taxpayers’ money previously administered by the EU. From January 2021, the UK will be able to invest in communities and businesses nationwide with powers covering infrastructure, economic development, culture, sport, and support for educational, training and exchange opportunities both within the UK and internationally – much of which were previously done at an EU level.
The transfer of powers from the EU to the UK government will complement and strengthen existing support given to citizens in Scotland, Wales, and Northern Ireland by the devolved administrations, without taking away their responsibilities. A strong UK Internal Market, with the ability of the UK government to invest to support all parts of our Union, will help the UK government to deliver prosperity for businesses and communities across all parts of the UK, levelling up the country and strengthening the Union.
The proposals will allow the UK government to meet its commitments to deliver replacements for EU programmes, such as a UK Shared Prosperity Fund, replacing bureaucratic EU structural funds and at a minimum match the size of those funds in each nation.
The Bill will also set out limited and reasonable steps to ensure that the government is always able to deliver on its commitments to the people of Northern Ireland. The UK government remains fully committed to implementing the Withdrawal Agreement and Northern Ireland Protocol.
However, at all stages we must, as a responsible government, ensure that we have the ability to uphold our commitments to the people of Northern Ireland, preserve the huge gains of the peace process and protect Northern Ireland’s place in our United Kingdom – as set out in the Command Paper published in May.
Chancellor of the Duchy of Lancaster Michael Gove said: The devolved administrations of the UK will enjoy a power surge when the Transition Period ends in December. Holyrood, Stormont and Cardiff Bay will soon have more powers than ever before and there will be no change to the powers the devolved administrations already have.
“This Bill will also give the UK government new spending powers to drive our economic recovery from COVID-19 and support businesses and communities right across the UK.
“No longer will unelected EU bodies be spending our money on our behalf. These new spending powers will mean that these decisions will now be made in the UK, focus on UK priorities and be accountable to the UK Parliament and people of the UK.”
The UK government has also laid out plans to establish an independent monitoring body, the Office for the Internal Market (OIM), to support the smooth running of trade within the United Kingdom.
The body will sit within the Competition and Markets Authority (CMA) and provide independent, technical advice to parliament and the devolved administrations on regulation that may damage the UK’s internal market.
The reporting and monitoring role undertaken by the OIM will be non-binding and carried independently from ministers and devolved administrations, ensuring impartiality and transparency when developing its evidence.
Where there is a matter of dispute, the OIM will ultimately provide such reports to the UK Parliament and each of the devolved legislatures and it will be for these bodies, supported by their respective administrations and intergovernmental processes, to determine how to take action in response, minimising the need to seek court action.
Andrea Coscelli, CEO of the Competition and Markets Authority, said: The new independent Office for the Internal Market will stand ready to provide technical advice to the UK government and parliament and the devolved administrations and legislatures on the smooth running of trade within the United Kingdom. The CMA will ensure that the OIM fulfils its role with professionalism, impartiality and analytical rigour.“
Without this action to preserve the status quo of seamless domestic trade, businesses across the UK could face serious problems: a Welsh lamb producer could end up unable to sell their lamb in Scotland, or Scotch whisky producers could lose access to supply from English barley farmers. These proposals create certainty for businesses that might otherwise face a complex and increasingly fragmented regulatory environment.
The UK’s existing high standards across areas including environmental standards, workers’ rights, animal welfare and food standards will underpin the functioning of the Internal Market to protect consumers and workers across the economy. The UK government is committed to maintaining high standards in these areas, including in all free trade agreement negotiations.
More than 270 businesses, charities, academics and industry groups responded to a public consultation on the proposals, launched in July. Responses showed overwhelming support from businesses for the measures to avoid additional costs to doing business between different parts of the UK and providing vital certainty for firms from January 2021.
Try as they may to sell the Bill, the Westminster government’s decision to renege on parts of the agreement previously negotiated with the EU will see the UK set on a collision course with Brussels, making a ‘No Deal’ Brexit increasingly likely.
The controversial decision has seen the UK Government’s most senior lawyer quit his post over the plans to modify the Brexit withdrawal agreement. It is understood Sir Jonathan Jones, permanent secretary to the UK Government Legal Department, is unhappy with the new bill to be unveiled today – a Bill which government minister Brandon Lewis admits will ‘break international law’.
The Scottish Government has said it is impossible to recommend the Scottish Parliament gives consent to the UK Government’s Internal Market bill.
The bill, which will be published by the UK Government tomorrow, engages the Sewel Convention, and therefore the UK’s constitutional rules require the consent of Holyrood.
Constitution Secretary Michael Russell said if the UK Government refuses to respect the will of the Scottish Parliament it will demonstrate once more that the UK’s constitution provides no protection to the devolution settlement and the UK Government can ignore the rules whenever it chooses.
Mr Russell said there is no mechanism to challenge such disregard for accepted practice, demonstrating the UK is “not a genuine partnership of equals”.
Mr Russell said: “It beggars belief that the UK Government is asking the Scottish Government to recommend consent to the Internal Market Bill. This is not a genuine partnership of equals and we couldn’t recommend consent to a Bill that undermines devolution and the Scottish Parliament, and which, by the UK Government’s own admission, is going to break international law.
“This is a shabby blueprint that will open the door to bad trade deals and unleashes an assault on devolution the like we have not experienced since the Scottish Parliament was established. We cannot, and will not, allow that to happen.
“It will open the door to a race to the bottom on food standards, environmental standards and will endanger key public health policies such as minimum unit pricing. It will also deliver a hammer blow to the Scottish economy by making it harder for the UK Government to conclude Free Trade agreements if other countries think the UK won’t meet its obligations.
“As each day passes, it becomes clearer that the people of Scotland deserve the right to choose a better direction, to determine their own future. That is why, before the end of this parliament, we will set out the terms of a future independence referendum clearly and unambiguously to the people of Scotland, in a draft referendum bill.”
Scotland’s leading pro-EU organisation, the European Movement in Scotland, today condemns the UK Government’s Internal Market Bill as both a breach of faith with the EU and an assault on Scotland’s democratic devolved settlement.
In a strongly worded letter sent to Ursula von der Leyen, European Commission president, and other leading EU figures, EMiS says it disassociates itself entirely from the UK’s “reckless behaviour” that “puts at risk the rule of law” and “threatens peace on the island of Ireland.”
At the same time, EMiS vice-chair David Clarke condemns the bill’s proposal to confer sweeping powers on UK ministers over the devolved administrations in Scotland, Wales and Northern Ireland without any control by MPs, MSPs etc.
He says: “The Scottish Parliament and the Scottish Government are having their powers cut against the democratic will of the voters of Scotland. This Bill is an assault on democracy.”
The full letter , also sent to Michel Barnier, EU chief Brexit negotiator, Charles Michel, European Council president, and David Sassoli, European Parliament president, is attached in full:
Dear President Von der Leyen,
I am writing on behalf of the hundreds of members and supporters of the European Movement in Scotland to let you, and all our EU friends and partners, know that we dissociate ourselves entirely from the reckless behaviour of the United Kingdom Government.
We share the view of the European Union that the Internal Market Bill is a breach of the undertaking in the Withdrawal Agreement to negotiate in good faith. It puts at risk the rule of law, it jeopardises arrangements for the continuation of peace on the island of Ireland and makes more likely a no deal outcome to the EU/UK trade negotiations. We utterly condemn this disgraceful and underhand proposal and support the EU’s demand that international law is upheld. It is not in our name.
In addition, we want to express our concern that the democratic settlement in Scotland is being undermined by this same legislation. As analysis by the Centre on Constitutional Change makes clear, the Internal Market Bill gives UK ministers new powers to control a wide range of devolved matters.
The devolved nations are to have no role in defining the internal market. UK Ministers will gain sweeping powers and can get more, through statutory instrument rather than fully scrutinised primary legislation.
The mutual recognition principle in the Bill means that goods, services and professionals meeting the standards of any part of the UK can be traded or work in all the others, and as England is by far the largest part, and the UK Government sets the rules there, it will decide. This is not a partnership of equals.
Further powers are given to UK ministers to spend in devolved areas. UK ministers can also decide the conditions of such spending. So the UK will gain more powers and it will exercise them on its own. There is no equivalent in the UK to the binding subsidiarity and proportionality principles in the EU. The Scottish Parliament and the Scottish Government are having their powers cut against the democratic will of the voters of Scotland. This Bill is an assault on democracy.
We in the European Movement in Scotland campaign relentlessly for membership of Scotland, and the wider UK, in the EU and for EU values of democracy, the rule of law, international solidarity etc. You will know that the voters of Scotland chose by a significant majority in the 2016 referendum to Remain in the EU. We ask that our friends and partners in Europe leave a light on for Scotland’s European future.
I am writing in similar terms to M. Barnier, to the President of the European Council and to the President of the European Parliament.
Scotland’s leading pro-European campaign organisation, the European Movement in Scotland, (EMiS) has launched a campaign through its affiliated local groups across the country to defend democracy and highlight the sectors of the economy already damaged by Brexit.
The campaign, designed to galvanise Scottish opinion in the face of serious threats to our economic and political future, proclaims: “It’s time to join forces and shout ‘enough'”.
Letters to Scotland’s MPs and MSPs will be sent by grassroots activists from Fife to the Highlands and from Glasgow to Perthshire, saying: ‘The very concept of democracy is being weaponised. A cornerstone of democracy is the right to oppose, to challenge, to debate.
‘And yet, since the vote to leave the EU in June 2016, many people have come to believe that it means the opposite. Attempts to debate the manner of our departure from the EU have been dismissed as undemocratic.” The campaign will demand that Scotland’s elected representatives stand up for democracy and the country’s economic interests.
EMiS chair, former MP for Edinburgh North and Leith, Mark Lazarowicz, said: “Whatever people’s views on the EU, on Scotland’s future, we all need to wake up to the steady dismantling of our democracy; to understand that we risk sleepwalking into something which is a democracy in name only.
“As soon as it’s COVID-safe, we intend to take our peaceful campaign out onto the streets to defend democracy.”
Over the coming days the rolling campaign will “alert people who may not yet have taken an active interest in the Brexit debate to the practical implications of our final departure, which will impact all of us in some way, and some of us – farmers, researchers, patients dependent on imported medicines – to an extreme extent.”
Activists point out: “Brexit was supposed to resolve NHS funding issues, according to the (fake) promise on the bus. But the ramifications of leaving the EU for both the NHS and social care will compound the current coronavirus crisis.”
In agriculture and food, the campaign will demand that high food standards are protected in any trade deals, that climate change mitigation is prioritised, animal welfare is safeguarded and support is extended to fragile rural communities in areas such as North and West Scotland.
Sir Graham Watson, former Liberal leader in the European Parliament has said that Brexit will mean that Scottish independence is “inevitable” and will see Scotland joining the EU as an independent member state.
He told a European Movement in Scotland webinar: “I see no reason to fear that provided Scotland is prepared for it.” But he warned: “I see precious little of that preparation going on, sadly” and accused the Scottish Government of “dither and drift.”
Sir Graham, who lost his MEP seat in 2014 and is now based in Edinburgh and Brussels, suggested that Scotland currently resembled more Slovakia than Denmark given its poor record on productivity and export trade and urged the Scottish Government to set up new “hubs” in Bratislava, the Slovak capital, as well as in Copenhagen and Helsinki in order to boost economic links.
Hubs already exist in Berlin, Paris and Dublin. He suggested Scotland might join the Nordic Council but rejoining the EU via the European Economic Area, he argued, was a “pipe-dream.”
Former SNP MP and Europe spokesman in the Commons, Stephen Gethins, urged business, universities and local authorities to invest in Scotland House, the Scottish Government centre in Brussels, and in wider links with the EU and Europe.
Campaign group European Movement in Scotland (EMiS) has welcomed the launch of eu+me, a new campaign to bolster our ties with Europe.
EMiS Chair Mark Lazarowicz commented: “As Scotland’s leading pro-EU campaign organisation, the European Movement in Scotland (EMiS) is delighted to welcome the launch of eu+me.
“The fact that almost three quarters of people in Scotland think that we would weather the economic storms caused by coronavirus better if the UK remained part of the EU, with 65 per cent of the population regretting the UK’s decision to leave the EU, should not come as any surprise.
“It is great that yet more people from across the political spectrum are asserting the settled view of the majority of voters in Scotland that our place is at the heart of Europe.
“As Scotland’s largest membership organisation dedicated to promoting our EU future, and with members from all the political parties represented in the Scottish Parliament, EMiS looks forward to working closely with eu+me.
“With every passing day we see the bleak con that is Brexit and the damage it is doing to our country, already reeling from Covid and blindly charging towards a Brexit cliff-edge.
“Being part of the EU offers us a dynamic, prosperous and sustainable Scotland, working in co-operation with our European friends on the basis of EU values of democracy, equality and solidarity.”
