FOURTEEN billion pounds a year – that’s how much a no-deal Brexit could cost Scotland, business leaders say.

The Confederation of British Industry (CBI), which speaks for 190,000 private enterprises, says Scotland is amongst the most “significantly exposed” to the impact of a no-deal withdrawal from the EU.

Newly published analysis by the body suggests the country could result in an annual loss of output worth as much as £14bn by 2034 – more than the entire yearly spend on hospitals, GP surgeries and other health services in Scotland.

The sum – based on the 8.1% drop in real gross value added (GVA) that has been estimated by the UK Government – is also equivalent to the annual value of the entire food and drink sector.

According to the Scottish Government that high-growth sector – which amounts to around 18,850 businesses – is responsible for 115,000 jobs.

And, as a result of the higher tariffs and trade costs that would come with operating under World Trade Organisation rules, the CBI has highlighted the risk to food production and farming, which it says is likely to be “severely impacted”.

And, urging politicians to work together to protect the economy, CBI Scotland director Tracy Black says it is impossible to ready the country for such a scenario.

Black said that, unless an agreement is reached, “the whole country faces the unforgivable prospect of a disorderly Brexit which will affect jobs and livelihoods in Scotland for decades”.

She stated: “CBI Scotland members are clear – if the new approach to finding a Brexit deal continues to be a game of who blinks first, the whole economy will pay the price.

“The deadlock will only be broken by a genuine attempt by all politicians to find consensus and compromise, not stick to rusting red lines and political conditions. Scotland is not – and cannot be – ready for no deal.

“The projected impact on our economy would be devastating and while business will do all it can to reduce some of the worst aspects, a no-deal scenario is unmanageable.”

The plea comes as Scotland’s Brexit Secretary Michael Russell prepares for talks in Brussels today.

Representing the Scottish Government, he will meet with MEPs Philippe Lamberts and Danuta Hubner, as well as European Policy Centre president Herman van Rompuy – the former president of the European Council – and its chief executive Fabian Zuleeg.

Calling for an extension to Article 50, Russell said: “A decisive majority of people in Scotland voted to remain within the European Union and the Scottish Government is determined to do all we can to ensure their wishes are respected.

“The Prime Minister’s deal has suffered a crushing defeat in the House of Commons but her statement yesterday failed to set out a realistic way forward and she seems intent on running down the clock, bringing the prospect of a no deal – and the threat it would pose to jobs, business and living standards – ever closer.

“The Scottish Government will now step up our efforts to secure an extension to Article 50 and for a second referendum on EU membership.”