100,000 Scots could lose their jobs if a no–deal Brexit goes ahead, says damning report.
A Scottish Government report has issued worrying predictions for the Scottish economy if the UK government does not get a deal before exiting the European union.
Experts are predicting that unemployment could rise by as much as four percent as the Scottish economy is expected to retract from between 2.5-7%, leading to a recession similar to the 2008 crash.
The report also stated that Scotland is expected to miss out on around £1 billion in investment due to uncertain market conditions in 2019.
Commenting on the publication of the report, Economy Secretary Derek Mackay said: “The economic harm of Brexit will be exacerbated if the UK Government decides to crash out of the EU without a deal. Such an outcome, which the Prime Minister refuses to rule out, represents a clear and present danger to Scotland’s economy. “People in Scotland voted overwhelmingly to stay in the EU but our interests are being ignored by a UK Government that wants to take Scotland out of the European Single Market, which is eight times the size of the UK alone.
“There will be severe impacts for the economy, and for people and businesses across Scotland, under a ‘No Deal’ Brexit and these impacts have the potential to push the Scottish economy into a deep recession, similar in scale to the financial crash of 2008.
“When I met with the Chief Secretary to Treasury in Cardiff last week, I urged her to rule out a ‘No Deal’ Brexit and give me a cast iron guarantee that all lost EU funding would be replaced in full after Brexit. She could do neither.
The EU and UK governments have now agreed to extend the triggering of article 50 to the 31st of October, as Theresa May scrambles to pass a deal through parliament, something many experts worry could damage the economy further as companies hold off investments due to uncertainty caused by Brexit.