CLARITY is not a word most people associate with the Brexit process. While the clock ticks on, the UK Government’s apparent inability to nail down the terms of any future relationship with the EU continues to give many the jitters, not least those in business.
First Minister Nicola Sturgeon therefore had every right yesterday to push Prime Minister Theresa May on assurances that the UK is doing all it can to establish transition arrangements that will meet the needs of Scotland and its business community.
Mrs May’s recent comments that no transition deal would happen unless a trading relationship with the EU was settled next year understandably makes many nervous. As Ms Sturgeon rightly pointed out in her letter to the PM, such prevarication gives no clear picture and only undermines. Earlier this month even Chancellor Philip Hammond acknowledged businesses needed more clarity on Brexit
There is now a real sense of urgency among many businesses that stress more than ever the need for the UK Government to agree the terms of transition with the EU by Christmas. For the moment though that still looks like a forlorn hope.
In Scotland, as elsewhere, this is worrying news. Businesses here have voiced their fears about the impact of Brexit on staffing, profitability and growth.
There is little doubt the Brexit vote and continued uncertainty has made the UK far less attractive to workers from elsewhere in the EU. In addition many of those already here will be inclined to leave the UK if the uncertainty over their future status remains.
These growing concerns were underlined earlier this month in a Scottish Government report. Among the issues highlighted was a warning by Glasgow Airport that airlines could lose the legal framework to fly some routes without new agreements being agreed pre-Brexit.
The ability to attract and retain staff was cited as a major concern by a number of businesses, including shortbread firm Walkers of Aberlour, which employs around 500 seasonal EU workers.
In almost every sector the pinch is beginning to be felt. In education for example the report highlighted that, at the University of Edinburgh, 26 per cent of staff and 15 per cent of students come from the EU. Everything from freedom of movement to future opportunities was flagged up as of real concern to the business community. The first minister is correct when she says governments and businesses across the UK need to be in a position to manage the “profound uncertainties” of Brexit.
The indications are that a bilateral meeting between the PM and FM is now due to take place to discuss these pressing issues, including the passing of the UK Government’s flagship EU Withdrawal Bill. Such a meeting cannot come soon enough. The voices of business and other concerned political players must be listened to before potentially-damaging and irreversible decisions are taken.
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