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by Staff Reporter
12 March 2024
Public services receive £1.6bn less in spending due to Brexit, Humza Yousaf to say

Humza Yousaf | Alamy

Public services receive £1.6bn less in spending due to Brexit, Humza Yousaf to say

Spending on public services in Scotland would be £1.6bn higher if it wasn’t for the impacts of Brexit on the economy, Humza Yousaf is to say later today.  

The first minister is due to give a speech at the London School of Economics, in which he will outline the impact Brexit has had on devolved spending power.  

Yousaf is expected to quote research from the National Institute for Economic and Social Research on the impact of leaving the EU.  

He will argue that the standard of living will increase in an independent Scotland that has European Union membership.  

The first minister is expected to say: “A combination of the economic powers that come with independence together with EU membership will be a powerful driver of better living standards and a fairer, stronger Scottish economy.  

“In Scotland, I believe there is broad public agreement that Brexit has damaged the economy and public services and that it should be reversed.  

“Yet at Westminster, there is agreement between Rishi Sunak and Keir Starmer that the UK should stay out of both the EU and the huge European Single Market – whatever the cost.  

“The National Institute for Economic and Social Research suggests that compared to EU membership, the UK economy was 2.5 per cent smaller in 2023, and it expects that figure to rise to 5.7 per cent in little more than 10 years’ time.  

“That means £69bn could have been wiped from national income in 2023, equating to £28bn of tax revenue - £2.3bn in terms of Scotland’s population share.  

“Around 60 per cent of spending in Scotland is on devolved services. With the same level of borrowing and taxation, that means without Brexit devolved spending power for our vital public services, such as the NHS, could have been £1.6bn higher than it is today.  

“In other words, Scotland has suffered an estimated £1.6bn cut that could have been invested in our NHS because of a Brexit that people in Scotland overwhelmingly rejected.   

“Giving people a choice over their future with the opportunity to escape the cosy Westminster no change consensus has never been more urgent or essential.”

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