Wednesday 29 June 2016

Brexit reflections #9 - Farewell to Scotland?

Amongst all the unpredictable consequences of last Friday's Brexit vote (and the momentous events of the long weekend - Cameron's resignation, the collapse of Corbyn's shadow cabinet), one which struck me most was the size of the majority for Remain in Scotland.  Given that the SNP's manifesto promised a 2nd Independence referendum it was no surprise that Nicola Sturgeon almost immediately said that Holyrood would begin the legislative preparations for such a referendum to take place.

I voted Leave after a lot of thought and with a heavy heart; I also think the Union is a better arrangement than the alternatives; so I'm dismayed at this turn of events. "I told you so", say some Scottish Unionist commentators (without actually saying how they could have been so sure what would happen).

So is disaster upon us? Or are the any reasons to be cheerful?  Well yes, I think there are.

1. Although the result was 60% Remain / 40% Leave, no-one knows how those votes break down. Were the Remainers all pro-Independence?  If so, Ms Sturgeon would have good reason to go the country again. On the other hand the evidence suggests that it was the more affluent who tended to vote Remain; the same sector of Scottish society that shunned Independence in other words. This could be good news for the SNP if it means former Unionist voters would switch to Yes out of sheer disgust at the prospect of leaving the EU. The problem is that Sturgeon doesn't know.

Moreover a vote to stay in the EU is not the same as a vote to rejoin once out.  And the desire to stay in the EU may not be as powerful an urge as that to stay within the Union.  Also the majority of Scots voted for the UK to remain in the EU, not Scotland to remain in it.  Then there's turnout - lower in Scotland than average, at 67% rather than 72% across the whole of the UK. Turn-out in the Indy referendum was about 85%.

A lot of unknowables here.

2. The economic arguments which are thought to have defeated the SNP in 2014 are if anything even more difficult to overcome now. The SNP's economic case was based then on heroic assumptions about the price of oil. But that price has now dipped still further. Moreover the economics are more widely understood, partly thanks to the work of Kevin Hague and his Chokkablog. Scotland would face a deficit increase of about £1700 per person immediately it left the UK.  It will be hard to explain to the Scottish electorate why they should embrace something which looks economically even worse than it did at the last referendum.

3.  Scotland would have to pay a financial contribution to the EU.  It might have to join the Euro.  It would, post Indy, have the largest deficit in Europe, many times the permitted level for joining the EU (remember that it was fiddling the figures, with the assistance of the Remain-supporting Goldman Sachs, which led to Greece's ill-fated admittance). Depending on the outcome of Brexit negotiations Scotland could find itself on the wrong side of a tariff barrier from a country with which it does the overwhelming majority of its business (four times that with the EU).  There would have to be a hard border, with fencing.  In order to regain their right to work in Paris, Munich and Madrid, Scots would have to give up their collective right to work in London, Manchester and Belfast.

4. Timing could be a key issue. Westminster may not be able to stop Indyref 2.0, but it could plausibly have a big say on when it happens. And timing could be crucial, for example if it looks as if HMG will be able to cobble together a deal on reasonable terms.  Moreover the longer the party are in office the more likely the Scottish electorate is to shrug off its rather bizarre infatuation with the SNP.

5. I never wish to see another referendum. And down here we've had only one. I can't imagine Scots would look kindly on a party which inflicted on it a third in five years.

Ms Sturgeon is unlikely to call a referendum unless she is absolutely sure she can win. I wonder whether she is already regretting her gung-ho response on Friday morning. The next few weeks' opinion polls will be interesting.