Blog: Brexit negotiators must listen to concerns of one of Scotland’s most important sectors

James Chadwick is head of food & drink, Scotland at Grant Thornton UK

Last week representatives from the Scottish food & drink industry held meetings in London and gave evidence to MSPs on the potential impact of Brexit.

It was the first key moment for the sector to speak up and ensure its voice is heard as negotiations get underway.

Scotland’s food & drink businesses have been riding high for a number of years, buoyed by growing government support, better collaboration and increased demand from consumers seeking high quality products.

Valued at £14 billion, the industry has grown both domestically and internationally, with food and drink now our fastest growing export market. 80 per cent of whisky sales are to other European Union members, highlighting just how important access to the single market is to the sector.

Freedom to trade across borders with a potential market of more than 740 million people has opened doors for an entrepreneurial, dynamic industry that is arguably more successful now than ever before.

But, it would be disingenuous to claim that all food & drink firms were vehement supporters of the EU. Increasing bureaucracy and a growing sense among some that decisions were being made from afar with little consideration about their consequences here have built a degree of suspicion and, in the case of industries like fishing, a desperation for radical change to provide some kind of vital lifeline.

Just weeks before the referendum, Grant Thornton surveyed hundreds of business leaders – including those in food and drink – asking them for their views on the future of our relationship with Europe. 65 per cent told us they wanted to remain in the EU.

It reinforces the view that companies, in general, feel dramatic economic and political change is ‘bad for business’. Even more concerning was our finding that only 2 per cent of those industry leaders had put in place extensive preparations for a potential Brexit. Our research suggests that businesses are now facing tough questions about how they deal with a raft of unknown future possibilities.

As politicians debate the prospects of Brexit and begin the delicate process of plotting a future route that satisfies the majority, it’s essential that they factor in the views of industries like food & drink. Amid a climate of increasing economic and political uncertainty, the sector has remained resilient and focused on growth. What it now needs is a commitment from political leaders that we will continue to have access to global markets while also receiving much needed support for our most fragile industries like fishing and farming.

We may only be at the start of a long, and potentially very challenging period of negotiations, but action must be taken now reassure the food & drink sector that Scotland will remain open for business.