TRACY BLACK

Two steps forward, one step back. I enjoy a ceilidh as much as the next person but it doesn’t feel a particularly effective way to progress the most important economic negotiation in generations. Yet a casual glance at the news in recent weeks and you could be forgiven for thinking that’s where we are on Brexit.

Little over a fortnight ago it seemed like the UK had a plan worthy of the name. It might not have been perfect but it represented a substantial line in the sand. Yet within days of Chequers, and the white paper that followed, that consensus looked in tatters amid resignations and parliamentary rebellions.

So where does that leave the Chequers deal now? It’s pragmatic, a step in the right direction and just maybe the only game in town. It’s also a position that business can, broadly speaking, play ball with. Yes, there are significant gaps – with a huge financial and professional services sector, Scotland will recognise that more than most – but it does give us a blueprint for trade negotiations and, against a ticking clock, that’s probably where we need to be.

What can business take from the Chequers deal?

The proposed free trade area with a common rulebook for goods is a genuine breakthrough – that’s good for manufacturers and supply chains. More detail is required on future customs arrangements but the direction of travel is positive and constructive – frictionless UK-EU trade remains the goal and we’re now a step closer to achieving it. While agreement on mutual recognition of qualifications, skills mobility and free-flowing data will be welcomed by the service sector, there’s clearly more to do. Like the rest of the UK, Scotland’s economy is heavily slanted towards services, so facilitating future market access is essential.

Recent political turmoil and continued constitutional wrangling has worried many companies. They see consensus fragmenting and the prospect of no deal increasing. That means taking difficult decisions, moving jobs overseas or lowering investment. For companies that have invested time and resources in Scotland or become fixtures in communities across the country, a cliff edge Brexit is simply out of the question. It would also be catastrophic for a Scottish economy that continues to falter.

Ahead of October there’s a sequence of events that must be achieved for business to consider Chequers a genuine step forward. Top priority is to sort out the Irish Border issue, wrap up the Withdrawal Agreement and secure a transition period beginning in March. That would help provide the certainty Scottish firms need to grow and invest – including those with customers and supply chains across the island of Ireland.

Once that’s been achieved, we need to look at gaps in the white paper, namely services and immigration. In particular, serious consideration needs to be given to how a post-Brexit UK immigration system will provide Scotland with the flexibility it needs to succeed. But above all, we need to put the politics behind us and bring compromise to the fore – time is running out for missteps.

While parliament may be in recess, the Brexit countdown continues apace. Chequers has added a dose of common sense to proceedings but, like all good dances, you need two to tango. That’s why we strongly urge the EU side to take the white paper seriously, show flexibility and engage in good faith. For Scottish businesses, we need detail, decisions and delivery and we need them in jig time.

Tracy Black is director of CBI Scotland.