Risks of higher consumer prices, loss of labour and EU funding.
A new report has been released outlining the extent of concern amongst Scottish businesses over Brexit.
Ernst & Young (EY) consulted over 80 businesses and trade associations in Scotland – and every organisation said that Brexit-related uncertainty was a major concern with businesses highlighting risks to competitiveness, profitability and, in some cases, their viability.
The report says: “The impact of Brexit on consumers in Scotland could be significant through price rises on all imported goods as a consequence of tariffs, border frictions and a weaker currency.”
Commenting on the findings Economy Secretary Derek Mackay 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.
“On top of the damage it is clearly causing to Scottish businesses Brexit, in whatever form, will cost jobs, make people poorer, damage our society and undermine the democratic decision of the people of Scotland to remain in the European Union.
“The UK Government must now take urgent steps to rule out a no-deal Brexit, which threatens to have devastating consequences for jobs, businesses and communities, extend the Article 50 process and hold a second referendum on EU membership.”
The Scottish Government has a dedicated website to help businesses prepare for Brexit.
EY Brexit report: Download "EY Brexit report.pdf" (886.67 KB)