(S5T-02593) Brexit Negotiations (Update)

1. Stewart Stevenson (Banffshire and Buchan Coast) (SNP): To ask the Scottish Government whether it will provide an update on the United Kingdom Government’s Brexit negotiations and their potential impact on Scotland. (S5T-02593)

The Cabinet Secretary for the Constitution, Europe and External Affairs (Michael Russell): Our understanding is that negotiations are continuing between the United Kingdom Government and the European Union, with significant differences remaining in relation to the level playing field and fisheries. Throughout the Brexit process, we have sought meaningful engagement in order to ensure that Scotland’s interests are protected, but, unfortunately, that has not been forthcoming.

That remains the case even at this endgame stage, in which we are largely unsighted on process and on progress, or any lack thereof. Engagement with the UK Government, especially at ministerial level, tells us little beyond what we already know from the media. We have had no ministerial engagement since the last joint ministerial committee, which was on 3 December.

By the Prime Minister’s own admission, the chances of a no-deal outcome are increasing. That would be absolutely catastrophic for Scotland and must be avoided, but I should make clear that even if a deal can still be secured, it will be a very low deal, which will represent an extremely hard Brexit. It will, for example, take Scotland out of the single market and customs union, and it will end freedom of movement, hitting jobs and living standards hard. Our modelling of the basic trade agreement of the type that the United Kingdom Government wants to negotiate finds that, by 2030, Scottish gross domestic product is estimated to be 6.1 per cent lower than if we continue European Union membership. That equates to a loss of £1,600 per person in Scotland. Of course, the impact of no deal would be even worse.

Stewart Stevenson: Like the cabinet secretary, I am appalled that, since 1 December, the Scottish ministers have not been engaged in the endgame of a very difficult set of negotiations—they were made difficult by the Tory Government.

I understand that agreement on participation in the Erasmus+ scheme post-Brexit has failed to be reached. Can the cabinet secretary tell us about the prospective impact on students, at a time when we are told that we will have to build new relationships and trade with countries across the world?

Michael Russell: The Scottish Government has always been clear that full association with Erasmus+ is in the best interests of Scotland. Wales and Scotland have argued on every occasion that if the UK Government decides not to proceed with Erasmus, Wales and Scotland should proceed with the scheme. It supports not only our universities and colleges but school sports and youth and community groups with mobility exchanges with other countries in Europe. Taking part is a transformational experience, and Scotland has done very well out of the scheme. It would be mad not to proceed with it, but if that is the UK Government’s decision it would be madder still to try to prevent Scotland and Wales from taking part.

Stewart Stevenson: In 1931, my mother was the beneficiary of a scheme that took her to study in France. It looks as though today’s generation will not be as fortunate as my mother was, 90 years ago.

With only a few days to go before the end of the transition period, we are being left in the dark. Does the cabinet secretary share my concern about the serious effect that that will have on students’ and communities’ futures?

Michael Russell: I understand that. One of my predecessors as president of the Scottish National Party, Winnie Ewing, was a prime mover in Erasmus as it was getting under way in its previous incarnations. We really need to get clarity on this, and let us hope that that clarity means that Erasmus will continue.

To damage the opportunities of our learners and young people, to threaten to diminish their life experiences and to undermine our institutions’ ability to secure the funding that is needed to support their ambitions would be mad. Institutions that take part in Erasmus need time to prepare, and the situation has already been deeply damaging to them. I hope that the UK Government is listening on this issue, although it seems to be listening on nothing else.

(S5O-04818) Economic Recovery (Funding Support)

2. Stewart Stevenson (Banffshire and Buchan Coast) (SNP): To ask the Scottish Government what its latest engagement has been with the United Kingdom Government regarding the funding provided to support the economic recovery from Covid-19. (S5O-04818)

The Cabinet Secretary for Finance (Kate Forbes): Ahead of the UK spending review last week, I wrote to the Chancellor of the Exchequer to stress the importance of delivering a fiscal stimulus package that will support businesses and households while regenerating the economy. I reiterated those points on the morning of the spending review.

Sadly, there was instead a cut to the Scottish Government’s capital and financial transaction budgets and a freezing of public-sector pay rises for many hard-working front-line staff. The chancellor ignored the proposal for a £9.21 per hour national minimum wage, and he failed to replace European Union funding in full, or to even to offer a proper plan on how to do so.

Stewart Stevenson: Many countries, including France, Germany and New Zealand, have introduced substantial economic stimulus packages in response to Covid. The cabinet secretary has just described the UK Government’s response. Has the UK Government articulated an argument to show that its response will help us, or will it do otherwise?

Kate Forbes: Stewart Stevenson mentioned other countries that have introduced much more generous economic stimuli than the one that the chancellor provided last week. As I said, ahead of the spending review, I urged the chancellor to follow the lead of those countries and to prioritise public services and economic recovery through a fresh stimulus. We suggested that the stimulus should be at least 5 per cent of gross domestic product, which would equate to £98 billion.

That investment is even more necessary, given the uncertainty that has been caused by the UK Government’s reckless approach to EU exit. Headlines today continue to prove that point. As we know, the UK spending review fell far short of what we proposed, which will only make it harder for us to deliver the fairer, greener and more prosperous Scotland that we all want.