George Osborne in stark warning over Brexit cost to Scotland

A vote for Brexit would cause a "profound economic shock" that would wipe £4.5 billion from Scotland's economy and increase unemployment by more than 40,000 over the next two years, George Osborne will warn.

Published 9th Jun 2016

A vote for Brexit would cause a "profound economic shock" that would wipe £4.5 billion from Scotland's economy and increase unemployment by more than 40,000 over the next two years, George Osborne will warn.

With just two weeks to go until the referendum on the UK's continued membership of the European Union, the Chancellor is to campaign in Scotland, where polls consistently show a majority favour remaining part of the EU.

Mr Osborne, who will be joined by Scottish Tory leader Ruth Davidson, will use the visit to reveal new analysis of the impact a vote to leave on June 23 could have north of the border.

Such a result could see the equivalent of a £4.5 billion reduction in the size of the Scottish economy by 2018, he will warn, while the jobless total could increased by about 43,000 over two years.

Homeowners could also see the value of their property reduced by £22,000 over the same period, according to the research from the UK Treasury.

More than two fifths (43%) of all exports from Scotland go the EU, while European firms have invested in Scotland more than 150 times in five years, creating or protecting 16,000 jobs.

Visitors from Europe have a key role in supporting Scotland's tourist sector, which employs nearl 280,000 people, while the agricultural workforce of 65,000 plus benefited from 648 million euro (£506 million) in grants from the Common Agricultural Policy in 2014.

Mr Osborne will say: "Every credible independent voice agrees that if the UK votes to leave the EU there would be a profound economic shock that would hurt people's jobs, livelihoods and living standards in Scotland.

"Trade exports to the EU have created jobs in Scotland and withdrawing from the single market would have a huge impact on the economy here. It is simply not a price worth paying.

"I urge everyone to vote to Remain in the EU on June 23."

Ms Davidson will state the big question facing Scots in the referendum is "what is best for jobs and for family security - leaving the EU, or staying part of the single market".

She will add: "There's no question in my mind that that staying part of the EU is the right answer.

"Thousands of Scottish jobs are reliant on the exports we sell within the EU. I'll be voting to remain in order to ensure we can create thousands more over the coming years."