Newington's Evan Williams looks at Scotland’s place in Europe following the publication of the Scottish Government's proposals for mitigating the impact of Brexit on Scotland.

The Scottish Government has set out, in detail, its preferred options for the forthcoming Brexit negotiations. It remains committed to both independence for Scotland and full membership of the EU for an independent Scotland.

Its position is that the whole of the UK should remain in the single market. However, should the UK Government negotiate to leave the single market, the Scottish Government argues that Scotland could, and should, nevertheless remain members, and which it argues could be achieved while Scotland remains part of the UK.

The Scottish Government believes that the free movement of goods, services and people between Scotland and the rest of the UK could be maintained, even if Scotland is in the single market, and the rest of the UK is not. It is argued that a range of differential arrangements already operate in the EU and that, given an apparent willingness to countenance special arrangements for sectors of the economy (notably the financial sector) and for Northern Ireland and for Gibraltar, there is no reason why such flexibility could not be applied to Scotland.

The Scottish Government argues that new powers would need to be transferred to the Scottish Parliament to facilitate this. In particular, powers due to be repatriated from the EU over which Scotland has competence (fishing and agriculture are the most obvious, but perhaps extending to aspects of environmental protection) should be transferred to Scotland. In addition, an argument is made for new powers to be transferred to Scotland. Powers over employment rights and immigration, it is suggested, would be needed to protect Scotland’s interests and allow Scotland to negotiate terms of entry into the single market.

So what does all of this mean?

Opinion in Scotland will inevitably be divided over these proposals, and it will be some weeks before clear headed analysis of the options reveal just how practical they are. Opponents may argue that the paper represents cynical posturing on the part of the Scottish Government in an effort to prosecute the real objective of independence.

Taking the Scottish Government at face value, what is proposed would result in a clear difference in the economic environments for business operations in Scotland compared with the rest of the UK. It would represent, of course, an opportunity for UK businesses to maintain a bridge to the single market through Scotland that could be closed off in the rest of the UK.

Businesses would be well advised to maintain a keen interest in progress on these issues and ensure that they remain prepared for the opportunities and threats presented by them. Newington’s Scotland office can help to ensure you are kept abreast of developments and ensure that your issues are raised in a timely and efficient manner with relevant ministers and departments. For more information, please contact Evan Williams.