Bank of Scotland’s Business Barometer for July 2019 shows:
Continue reading Rock bottom: Business confidence takes a battering
First Minister warns a ‘no deal’ exit will “inevitably cause disruption”
The Scottish Government will do everything in its power to stop a deeply damaging ‘no deal’ Brexit, the First Minister has confirmed.
At a cabinet meeting ministers also agreed to step up preparations for a ‘no deal’ after the UK Government’s refusal to enter into negotiations with the EU made such an outcome more likely.
The First Minister will chair a meeting of the Government’s Ministerial Group on EU Exit Readiness next week.
The First Minister said: “In its first week the UK Government has shown it is willing to risk a ‘no deal’ Brexit. Taking Scotland out of the EU in any way is deeply undemocratic but the Prime Minister’s refusal to engage with the EU has dramatically increased the prospect that we will face a deeply damaging ‘no deal’ Brexit.
“If the Prime Minister continues with this approach Scottish jobs will be lost and our economy seriously damaged and it will be entirely the UK Government’s responsibility.
“Having assessed the actions of the new UK Government our work to prepare for ‘no deal’ will intensify in the coming weeks and months. But even with the best possible preparations, leaving the EU without a deal will hurt Scotland’s businesses, disrupt trade and impact on all aspects of society. There is simply no way to mitigate every impact that ‘no deal’ will have, no matter how hard we try.
“The willingness of the UK Government to pursue this approach, against all the evidence, shows why we must continue to make preparations for a referendum that will give people the right to decide Scotland’s future, instead of being dragged out of the EU against their will.”
Despite the Scottish Government’s concerns a No Deal Brexit is looking increasingly likely. The EU is not minded to renegotiate an agreement and the Westminster government’s rhetoric suggests that the UK will leave the EU on 31 October, deal or no deal.
Yesterday, Communities and Local Government Secretary Rt Hon Robert Jenrick MP (above) said local councils should be fully prepared to leave the European Union by the end of October, as he ramped up preparations.
Mr Jenrick thanked councils for all the work they have already done, but said they must step up vital preparations and committed £20 million for councils across England to prepare for delivering Brexit on 31 October, whatever the circumstances.
He has asked each council to designate a Brexit lead to work with central government and oversee teams in every community who will work with stakeholders in their area to plan intensively for Brexit.
The new funding comes in recognition of the central role councils will play to make sure their residents are ready for Brexit, and is expected to support a range of activity including communications, training and the recruitment of staff.
Mr Jenrick will continue to talk to local council leaders to give them the opportunity to discuss preparations and the opportunities of Brexit ahead.
Communities and Local Government Secretary Rt Hon Robert Jenrick MP said: “From Whitehall to town halls – everyone needs to be ready to fulfil our democratic mandate to leave the European Union by the end of October.
“Local government has a vital role in helping to make Brexit a success and it is absolutely right that together we intensify preparations in every community.
“And to do this successfully I have asked every council (in England – Ed) to appoint a Brexit lead to work with government. We’ll be providing £20 million for councils to support the major step up in preparations.
“I want all of us – central and local government – to be fully prepared for leaving the EU on 31 October whatever the circumstances. I know that we can achieve this, by continuing to work side by side with renewed national focus and intensity.”
The UK government recognises that certain areas face more acute pressures. It is currently considering how best to allocate funding to ensure that those areas where greater impacts are expected, such as high impact ports of entry, get the funding they need in order take appropriate steps.
At his first meeting with senior leaders from English local authorities since becoming the Communities and Local Government Secretary earlier this week, Mr Jenrick told representatives that the government will support them to ensure they are ready to leave the EU in just under 90 days’ time.
Departments will continue to assess and, if appropriate, fund any potential new requirements of local authorities as part of Brexit work they are undertaking.
In January the UK Government committed £58 million of funding to support local authorities in their preparations for Brexit.
An immediate cash boost to help get the UK ready for Brexit on 31 October has been announced by the Chancellor of the Exchequer, Sajid Javid. Continue reading Chancellor allocates extra £2.1 billion to ‘turbo-charge No-Deal Brexit preparations’
Joint letter to the Prime Minister
The First Minister of Scotland Nicola Sturgeon and the First Minister of Wales Mark Drakeford have jointly written to the new Prime Minister asking him to immediately rule out a ‘no deal’ Brexit.
The First Ministers set out four steps the new Prime Minister can immediately take to establish a more productive relationship between the governments of the UK. These include:
· the need for the on-going Inter-governmental Relations Review to put in place more robust machinery for working together on the basis of greater equality.
· a commitment to full involvement of the devolved administrations in international negotiations which impact on devolved competence.
· the UK Government should ensure that Scotland and Wales would be no worse off if the UK does leave the EU.
· the Immigration White Paper should be replaced by proposals which reflect the needs of the economy of the whole of the UK.
They have also called for the UK Government to prepare for a second EU referendum.
The First Ministers say in their letter:
Dear Prime Minister
We congratulate you on your appointment as Prime Minister. This comes at a critical time when all four nations of the country face unprecedented constitutional challenges which are placing great strain on the relationships between our governments.
We are concerned that you have not ruled out leaving the European Union without a deal on 31 October. While we will continue to do everything we can to ensure that we are as prepared as possible for this eventuality, there should be no doubt that the consequences would be catastrophic for all parts of the UK. It would be unconscionable for a UK Government to contemplate a chaotic no-deal exit, and we urge you to reject this possibility clearly and unambiguously as soon as possible. We are also clear that the decision on EU exit must now be put back to the people. It is the policy of both governments that the UK Parliament should legislate for a further referendum. If such a referendum is held we will argue strongly that the UK should remain in the EU.
While the prospect of a no-deal exit exists, despite the differences between our governments, there must be strong and constructive joint planning and action to mitigate the effects so far as possible. As recognised when we were preparing for a March deadline, this must be done in a way that fully respects devolution. And in any next phase of the EU Exit process, the meaningful involvement of all the United Kingdom’s governments in the decisions that affect them is crucial. This will require a significant shift in the culture and approach to intergovernmental relations we have experienced over the past three years, to ensure that proper respect is given to devolved interests and institutions.
Against this background, there are a number of early steps that could be taken to establish a more productive relationship between our governments.
First, we need to complete the Inter-governmental Relations Review to put in place more robust machinery for working together on the basis of greater equality. We cannot reset the relationships and deliver these priorities without replacing the current inadequate inter-governmental machinery which is not fit for purpose. We need to urgently replace the current arrangements with ones which recognise the equality of status of each government and provide an opportunity for genuine discussions and influence over policy making. There is a need to build confidence in the respect for decisions made by the devolved institutions, especially legislative decisions under the Sewel Convention. There is also a need for independently-facilitated mechanisms for resolving disputes. Addressing these issues effectively requires urgent, meaningful and timetabled action, before any withdrawal of the United Kingdom from the European Union.
Second, we need a commitment to full involvement of the devolved administrations in international negotiations which impact on devolved competence. If we leave the European Union, we will need to renegotiate the United Kingdom’s relationship with the European Union institutions and the rest of the world. The interests and responsibilities of the devolved institutions and governments will be affected, directly and indirectly. The devolved institutions and governments also have knowledge and expertise to contribute to the UK’s negotiating efforts. The former Chancellor for the Duchy of Lancaster recognised the need for the UK Government to agree an enhanced role for the devolved institutions and governments in any such discussions and decisions. We seek an early commitment from you to do just that, without prejudice to the full completion of the IGR Review. The Scottish and Welsh Governments and our Parliaments cannot be expected to co-operate on implementing obligations in devolved areas where we have not been fully involved in the determination of those obligations.
Third, your Government needs to make good the promises made by the Leave campaign that Scotland and Wales would be no worse off as a result of leaving the EU. We require a commitment that there will be no financial detriment to the devolved administrations and the public sector more generally in Wales and Scotland in consequence of the EU withdrawal process. The forthcoming Spending Review should end the policy of austerity in the interest of all governments. The establishment of successor arrangements for EU funding must be based on genuine engagement and fully respect the devolution settlements. The lack of any meaningful engagement between our governments on what a proposal for a UK wide Shared Prosperity Fund, agreed on the basis of parity, might look like is particularly concerning. It would be unacceptable if the UK Government made unilateral decisions on spending in areas currently the responsibility of the devolved administrations, accountable to our respective legislatures and electorates.
Fourth, the Immigration White Paper needs to be replaced by proposals which reflect the needs of the economy of the whole of the United Kingdom. The impact on Scotland and Wales of the UK Government’s proposals to end EU free movement of people has been continually ignored. Both countries will face severe demographic, economic and social challenges should the UK Government continue to reinforce the commitment to cut net migration to the ‘tens of thousands’. We must urgently discuss how to collaboratively develop migration policy in a way that fully meets the distinct needs of each part of the UK.
These changes cannot be delivered without proper consideration of any differences of understanding between governments in relation to the devolution settlement: relationships between and roles of the UK and devolved governments, and thus the basis of engagement. The devolution settlement does not create a hierarchy of governments: each administration has its area of competence, for which is accountable to an elected legislature. There is therefore a need for negotiation and agreement between the governments to be recognised as the only possible basis for successful joint working.
Your appointment provides an important opportunity to recognise the significance of these issues and put in place actions required to reset relationships for the effective governance of the United Kingdom. We ask that you convene a meeting of the Heads of Government as soon as possible so that we can discuss these critical issues as a matter of urgency.
Your agreement to these steps would be an important signal to us, to our legislatures and to our peoples of the positive way in which you intend to work with us during your tenure.
Yours sincerely
NICOLA STURGEON MARK DRAKEFORD
First Minister highlights risk of Brexit.
The First Minister Nicola Sturgeon has written to the new Prime Minister to set out the potential impact of Brexit and urge a change in course to protect Scotland’s people and economy.
Full text of the letter:
Congratulations on your appointment as Prime Minister.
I will be shortly writing to you, along with the First Minister of Wales, to set out jointly our position on a range of urgent matters that require consideration by a meeting of the Heads of Government. Such a meeting should be convened as soon as possible.
However, I am writing to you today to draw your attention to work carried out by the Scottish Government which details the likely specific impact of Brexit on Scotland. Given the gravity of the potential damage to jobs and livelihoods, this material should be at the top of your in-tray.
You will be aware that people in Scotland voted overwhelmingly to remain in the European Union. Subsequent Scottish Government analysis shows that a no-deal outcome could cost 100,000 Scottish jobs. Even a free trade agreement could see a fall in Scottish national income of around £1,600 per person compared with continuing EU membership. I urge you to study this analysis closely so that you understand the implications for Scotland of the policy you are pursuing on Brexit and why it is therefore imperative that you change course immediately to avoid causing lasting harm to the people of Scotland.
However, given your public comments about leaving the EU on October 31 with or without a deal, “come what may” and “do or die” , it is now – more than ever – essential that in Scotland we have an alternative option.
In line with the democratic mandate given to us in 2016, the Scottish Government will continue to make preparations to give people in Scotland the choice of becoming an independent country.
The right of the people of Scotland to determine their own future is a basic democratic principle that must be respected.
Similarly any decision of the Scottish Parliament on whether to give people that choice must be respected. The Parliament will consider the necessary framework legislation for a referendum after the summer recess, and I look forward to taking this matter forward with you once MSPs have had the opportunity to debate the issue further.
NICOLA STURGEON
The unifying power of culture will be used to emphasise Scotland’s global connections in the face of Brexit. Europe Minister Ben Macpherson will tell an international arts awards ceremony in Spain tomorrow that Scotland will continue to develop strong cultural links with the European Union. Continue reading Ben Macpherson: Culture will strengthen global links
The results of a consultation carried out across Scotland on the impact of Brexit has been published in a new report. Brexit: Unheard Voices brings together the views of 13 groups on preparing for the UK leaving the EU. Continue reading Brexit: Unheard Voices – consultation report published
Continue reading Funding to support vulnerable EU citizens in Scotland
Members and supporters of leading pro-EU campaign group the European
Movement in Scotland made their voices heard as Brexit Party leader, Nigel Farage, held a rally at Edinburgh’s Corn Exchange last night. The group told him that his ‘No Deal Brexit’ rhetoric is not welcome here, as well as standing up for EU citizens, in a peaceful but good-natured manner. Continue reading Pro-EU campaign group rallies against Farage’s No Deal ‘fraud’
Pentlands MSP Gordon Macdonald has said that “Scotland remains open and welcoming” following an announcement from the SNP Government that free tuition for EU students will be extended beyond 2021 despite ongoing Brexit uncertainty. Continue reading MSP welcomes extension of free tuition for EU students in Edinburgh
