Stephen Flynn, the Scottish National Party (SNP) leader in Westminster, will address the “folly” of Brexit. He intends to raise these points the next time he meets with Andrew Bailey, the newish governor of the Bank of England. Flynn calls for the UK government to re-open its trade deal with the European Union (EU). He feels very strongly that both Scotland and the rest of the UK deserve a better deal.
In May, Prime Minister Sir Keir Starmer unveiled a framework agreement with the EU. This agreement addressed many critical issues including fisheries, commerce, national defense and energy resource management. Secondly, he ruled out the Liberal Democrats’ constructive suggestion for a new customs union based on EU membership to be negotiated with the EU. This decision understandably left many Scottish businesses disgruntled. The fishing industry has been particularly vocal about their criticism of the new trade agreement.
Flynn’s remarks come against the backdrop of Scotland’s overwhelming vote to remain in the EU, with 62% opting to stay during the 2016 Brexit referendum, contrasting sharply with the overall UK vote to leave. In view of this, he has called on the government to adopt a different approach to negotiating with the EU.
“If she truly wants to recognise the damage of Brexit, there’s only one thing that she can do, and that’s to try and enter into as extensive negotiations as she possibly can with the European Union to put it right,” – Stephen Flynn
The effect of Brexit on the broader UK economy – one of the biggest issues we’ve focused on. Then Bank of England Governor Andrew Bailey said that Brexit would hurt Britain’s GDP growth “for many, many years to come.” Furthermore, the Office for Budget Responsibility has estimated that leaving the EU could decrease the UK’s GDP by about 4% in the long term. The new Chancellor Rachel Reeves welcomed recognition that a deal made by the former Conservative administration had inflicted long-lasting economic harm.
The new Labour government has established a transition fund to help fishermen and coastal communities through the difficult economic transition. This effort will collectively unfold during the next dozen years. Even with these preventative measures in place, Flynn contends that there is the greater need for action.
“Rachel Reeves is indicating that we’re right in this regard, but it’s not good enough to be right or good enough for the chancellor to recognise the error of her own ways,” – Stephen Flynn
Flynn has argued that solving the economic effects of Brexit can only come from strong action by national politicians. He said that demographic driven budget cuts across the UK are a legacy of the economic aftershocks of Brexit.
“She needs to do something about it and she’s the only person who can do something about it,” – Stephen Flynn
The SNP leader pointed fingers at Nigel Farage, claiming that his influence contributed significantly to the current economic challenges facing the UK.
“And who’s the man responsible for that? Nigel Farage,” – Stephen Flynn
Ahead of his possible meeting with Bailey, Flynn told CityAM that he hoped to have a long and productive discussion about the effects of Brexit on the economy.
“So who knows, myself and the governor of the Bank of England might have an interesting conversation in that context and based upon his comments of late in respect to Brexit, we’ll probably agree,” – Stephen Flynn