SCOTLAND faces a “no-deal Brexit nightmare”, Constitutional Relations Secretary Mike Russell has said, following the UK Government’s publication of two dozen “technical notices” to prepare for the UK leaving the EU in March with no agreement.
The papers, unveiled yesterday, cover preparations consumers and businesses should take in case agreement cannot be reached before Britain leaves the bloc.
They show consumers would face a multimillion-pound hit because of a “likely increase” in the cost of card payments between the UK and the EU.
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Cross-border payments would no longer be covered by a “surcharging ban” that prevents businesses adding an extra levy when people use a specific payment method, such as PayPal or debit and credit cards.
UK citizens living in Europe could also lose access to their pension income and other financial services.
The notices also show the UK Government’s no-deal preparations rely on being able to negotiate bilateral deals, for example to allow continued access to European markets for UK financial services providers and to the Horizon 2020, Erasmus and nuclear research programmes.
“These technical notices reveal the no-deal Brexit nightmare facing Scotland and lay bare the risks facing Scottish businesses, the economy and public services,” said Russell.
“From the bureaucratic burden that will be imposed on EU imports and exports to the need to strike a wide range of no-deal deals before the end of March, these notices only add to the uncertainty surrounding Brexit.
“People want to know if their medication will still be available and farmers and fishermen want to know if they will still be able to sell their products.
“While a responsible government must prepare for all exit possibilities, the UK Government should rule out a disastrous no deal and focus instead on securing the best outcome for us all – which, short of staying in the EU, is remaining part of the single market and customs union.”
Rural Economy Secretary, Fergus Ewing, added: “These technical notices simply reiterate previous UK Government statements about the Withdrawal Act, a transition period and short-term funding guarantees, but they provide little reassurance that the UK Government has robust plans in place to provide longer-term support for agriculture and address the economic challenges Brexit will present for rural businesses.
“During the referendum, promises were made to farmers that they would continue to receive at least the same level of funding as they currently do in the event of Brexit.
“These papers fail to confirm that this will indeed happen, and in fact give no detail on what is actually meant by the UK Government’s commitment to maintain the same level of farm support until the end of this Parliament.”
The GMB union said the “chaos” of the no-deal papers showed the Government’s “utter contempt” for the public.
Jude Brimble, the union’s national secretary, said the Tory government was gambling with industry and people’s lives.
She said: “In their frantic scramble to keep the party and fragile coalition together they are showing an utter contempt for the British public.
“Ministers said a trade deal would be easiest thing in the world and now with a few months to go we are preparing for chaos.
“GMB demands the Government put people’s jobs, safety and health above settling internal party squabbles.”
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Federation of Small Businesses (FSB) national chairman Mike Cherry, said the dangers of a no-deal Brexit had been laid bare.
“A pro-business Brexit is one with a transition period – a vital lifeline that won’t be there in a no-deal scenario,” he said. “The smallest firms will be the least able to cope with a cliff-edge moment.
“It’s right to prepare for a no-deal outcome. That means following-up these notices with guidance that every small business owner can understand. ‘Technical’ is certainly the word – anyone without real expertise won’t be able to make head nor tail of these documents.”
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