Nicola Sturgeon: Scotland will lead Brexit fight to stay in single market

There are good reasons for that. After all, before the 2014 referendum on independence, one of the key arguments made by Unionists, was that Scotland could only safeguard our place in the EU, if we stayed in the UK. That argument turned out to be completely false.

In many respects, in fact – and as a direct result of the Brexit vote – the UK that Scotland voted to be part of in 2014 is likely to change fundamentally. So it is entirely reasonable for Scotland to have the option of reconsidering the decision that we took in 2014.

However moving towards a referendum on independence has not been my starting point, in addressing the result of the EU referendum. My starting point is to find the best way for Scotland to retain the benefits of EU membership. To achieve that, I’m pursuing two parallel approaches.

The first is one which directly affects all of you. The Scottish Government will do everything we can to influence the UK Government’s approach to Brexit. Now, it’s fair to say that so far we have found our discussions with the UK Government – and I’m trying to be nice here – less enlightening than we would have liked.

I was astonished two weeks ago to be accused of trying to undermine the UK Government’s negotiating position on Brexit. It is – quite literally – impossible for me to undermine the UK Government’s negotiating position on Brexit. I have absolutely no idea what it is! Indeed, I’m not sure that it exists.

However we will continue to work in good faith with the UK Government. And in doing so, we will set out the Scottish Government’s clear view that the UK as a whole should seek to retain full membership of the single market – meaning, among other things, that we can continue to trade with our EU partners without barriers.

There is a strong democratic justification for that approach. After all, 48 per cent of the electorate voted to remain in the EU. So did two of the four nations of the UK. And Sheffield is a perfect example of how close the referendum was in much of England. This city voted to leave by 51 to 49 per cent – only 6,000 votes separated the two sides.

I completely accept that there was a narrow majority in Wales and England for leaving the European Union. However I don’t believe it can be concluded that there was a majority anywhere for leaving the single market. Although a hard Brexit might appease some members of the UK Cabinet, it would damage trade, reduce employment and cause unnecessary hardship.

And for that reason – and this is the second strand of our approach – the Scottish Government is also investigating whether distinctive solutions are possible for Scotland.

In particular, if the current UK Government decides to take the rest of the UK out of the single market, then the Scottish Government will seek a separate settlement that allows us to stay in. Alongside this, the Scottish Government will continue to focus on the second key challenge which the EU referendum has highlighted.

We know that policies such as free trade and immigration often bring benefits to the economy as a whole, but they also have the potential to disadvantage particular areas and particular groups. The vote to leave the European Union had many causes. But people on low incomes were more likely to want to leave. When you allow for student numbers, so too were areas with low employment.

This was highlighted in a recent report from the Inclusive Growth Commission of the Royal Society of the Arts. It pointed out that the referendum “has revealed the extent of voter dissatisfaction with our current economic model”.

And it quoted a councillor who spoke at one of its evidence sessions here in Sheffield.

He said: “We could’ve told you our communities would’ve voted leave before Christmas. Project Fear over the economy crashing if we voted to leave fell empty on the ears of many people. For them, the economy crashed ten years ago.”

That quote summarises a basic truth. There is no point in telling people to fear change, if their current circumstances don’t inspire hope.

I’m well aware that the scale of immigration in England makes it – understandably – a bigger topic of debate than in Scotland. And people may often have legitimate concerns about whether increased immigration affects their own access to public services and housing.

But, in my view, the answer isn’t to target immigration as the source of these problems; it’s to invest in public services in order to address those legitimate concerns.

It’s to generate hope rather than play on fear.

Nicola Sturgeon is the First Minister of Scotland who spoke at the Sheffield Political Economy Research institute.