Election: FSB in Scotland calls for Brexit hiatus as business leaders demand stability before talks

Andy Willox, FSB’s Scottish policy convenor, said: “Scotland’s smaller firms need strong local champions. FSB congratulates those who were successful at yesterday’s elections and thanks everyone who campaigned hard to represent their community.

“Scottish business wants reassurance that political turbulence doesn’t result in prolonged economic disruption. Indeed, we would argue that Brexit talks should be postponed until political stability is established.

“We would make the case for Scotland’s 59 MPs – across all the parties - to reinforce their links with local firms. Our new representatives should bring local business intelligence to crucial decisions, especially those related to Brexit.”

The call was echoed by Liz Cameron, chief executive of Scottish Chambers of Commerce.

She said: “Voters across the UK have spoken and no single political party has emerged as the overall winner. As the politicians enter a period of negotiation, business will look for a stable Government to be formed swiftly that will provide confidence to the business community and ready to start negotiations on Brexit.

“With the clock ticking on Brexit, the next UK Government’s key short term priority must be to secure a deal on the rights of EU nationals to live and work in the UK. These workers are essential to Scotland’s businesses and an early deal would go a long way to ensuring stability of the talents they need to succeed and grow. I will also be looking to open up a dialogue with the UK Government on its medium to long term plans for migration, which need to be designed to meet the skills needs of our business sectors and the needs of the various nations and regions within the UK.

“Businesses also need the reassurance that they will not be faced with new and unplanned tax burdens, and that the Government will press ahead with its plans for an Industrial Strategy, which must crucially take full account of the role and powers of the Scottish Government and other devolved administrations.

“The next Parliamentary term will be crucial to the fortunes of our businesses, as the Government and the EU hammer out a deal that will define our trading relationships with Europe and, ultimately, the wider world. This is happening at a time when Scotland must increasingly look outwards and to grow our exporting potential in order to secure the growth that our businesses and our economy needs; creating new, high skilled, high value jobs and real shared prosperity. These are challenging times but also times of great opportunity, and we will work with our Governments in Edinburgh and in London to secure future success.”

Also reacting to the result and its impact on markets, Edinburgh-based Standard Life said: “Initially we expect risk markets to stumble - sterling has already pushed a little lower as nerves build around potentially bumpy Brexit negotiations. On the back of these concerns, credit spreads are likely to widen slightly and domestic equities and Real Estate Investment Trusts (REITs) to underperform. Gilts are likely to strengthen, with market perception focusing on a more difficult Brexit negotiation process for a weakened government. Longer term, the market is likely to be more sensitive to how the eventual government affects policy and decision-making through the parliament.”