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Parliamentary debates and questions

S5W-06109: Jackie Baillie (Dumbarton)

Scottish Labour

Date lodged: 12 January 2017

To ask the Scottish Government what assessment it has made of the potential impact on current and planned foreign direct investment of leaving the Customs Union.

Answered by: Keith Brown 24 January 2017

European Union membership has been vitally important for attracting inward investment into Scotland as it allows companies free access to European markets. There are currently 1,000 EU-owned companies in Scotland employing 127,110 people. Ernst and Young estimate that since 2006, Foreign Direct Investment in Scotland has created nearly 40,000 jobs. According to the most recent data, Scotland secured more Foreign Direct Investment projects than any part of the UK outside of London.

Lower Foreign Direct Investment is just one of the channels through which the economy will be affected should the UK leave the single market. A Scottish Government analysis, "Potential Implications of the UK leaving the EU on Scotland's Long Run Economic Performance", was published in August 2016 and highlighted that by 2030, a hard Brexit could reduce Scottish GDP by £3.7bn - £11.2bn (£700 to £2,100 per capita).

A copy of the analysis is on the Scottish Government website at: http://www.gov.scot/Resource/0050/00504615