First Minister Nicola Sturgeon has said a second Scottish independence referendum is now “more likely” after Theresa May confirmed the UK will quit the single market along with the European Union.
The Prime Minister said her plans for Brexit cannot allow continued membership of the single market, which would require free movement of people and accepting the jurisdiction of the European Court of Justice.
Instead, she said that she will seek “the greatest possible access to the single market on a reciprocal basis, through a comprehensive trade agreement”.
That flies in the face of Ms Sturgeon’s demands on Britain’s future outside the EU, which boiled down to single market membership for the whole of the country, a separate Scottish deal allowing a Norway-style deal, or a second vote on the future of the UK if neither were achievable.
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For full coverage, reaction and analysis see Wednesday’s Courier
Although Mrs May said she would listen to the devolved administrations, she said it was crucial that “no new barriers to living and doing business within our own Union are created”, effectively ruling out Scotland being in the single market.
She did pledge there would be further devolution to Holyrood under the deal, but was not specific about what new powers could be put under the control of MSPs.
That was far from enough to satisfy Ms Sturgeon, who said: “Scotland did not vote for the direction set out in the Prime Minister’s speech today – and it is not in our national interests.
“For all her warm words, it is now clear that the UK is heading for a hard Brexit, which threatens to be economically catastrophic.
“Decisions are being driven not by the rational best interests of the country, but by the obsessions of the hard-right of the Tory party.
“It is also becoming clear that a more fundamental issue is emerging – not just whether the UK is in or out of the EU, but what kind of country it is going to be.
“The Prime Minister gave the game away towards the end of her speech when she talked of the potential for the UK to become a low wage, low tax, de-regulated economy.
“That would see a race to the bottom replace our membership of the single market and everyone – perhaps apart from the very wealthiest – would be worse off as a result.”
She added: “The Scottish Government set out, before Christmas, compromise proposals that would protect Scotland’s interests – and we made clear the central importance of single market membership to Scotland’s economic and wider national interests.
“While discussions on those proposals continue, and while the Prime Minister today reiterated her pledge to give our plan proper consideration, we have not yet seen evidence that Scotland’s voice is being listened to or our interests taken into account.
“That must change in short order if there is to be any confidence that Scotland’s interests can be met within the UK.
“And if, as the PM has now signalled, the UK is not staying in the single market, then there must be serious engagement on our proposal to allow Scotland to do so.
“So while the Scottish Government will continue to take decisions in an orderly and responsible way, one thing should remain crystal clear – the Tory Government cannot be allowed to act against Scotland’s wishes and our interests, and reject all attempts at compromise.
“It seems the Westminster Tory Government now think they can do anything to Scotland and get away with it. They must start to understand how wrong they are. The UK Government cannot be allowed to take us out of the EU and the single market, regardless of the impact on our economy, jobs, living standards and our reputation as an open, tolerant country, without Scotland having the ability to choose between that and a different future.
“With her comments today, the Prime Minister has only succeeded in making that choice more likely.”
The House of Commons and House of Lords will be able to vote on any deal with the Brussels bloc.
Mrs May threatened to walk away from talks, however, if she did not feel they were producing an outcome in the country’s best interests.
She said remaining in the single market would mean “to all intents and purposes” not leaving the EU.
“As a priority we will pursue a bold and ambitious free trade agreement with the EU.
“This agreement should allow for the freest possible trade in goods and services between Britain and the EU’s member states.
“It should give British companies the maximum possible freedom to trade with and operate within European markets and let European businesses do the same in Britain.
“But I want to be clear: what I am proposing cannot mean membership of the single market.”
European leaders had stressed that single market membership meant accepting free movement of goods, services and people.
Being out of the EU but remaining in the single market would also mean being bound by the rules and regulations without having a say in how they are drawn up.
“It would, to all intents and purposes mean not leaving the EU at all,” she said.
“That is why both sides in the referendum campaign made it clear that a vote to leave the EU would be a vote to leave the single market.”
She also said the UK would seek the “greatest possible access” to the single market through a “new, comprehensive, bold and ambitious free trade agreement”.
Mrs May said the UK would regain control of its borders.
“We will get control of the number of people coming to Britain from the EU.
“Because, while controlled immigration can bring great benefits, filling skill shortages, delivering public services, making British businesses the world beaters they often are, when the numbers get too high, public support in the system falters.”
Mrs May warned the EU against trying to “punish” the UK as a warning toothers who might seek to leave the bloc.
She said seeking a punitive Brexit deal with the UK would be “an act of calamitous self-harm”, adding that “no deal for Britain is better than a bad deal for Britain”.
Mrs May said she did not want a long transitional period to move towards Britain’s new relationship with the EU.
But she said that once a deal is agreed, it will be implemented with a “phased approach, delivering a smooth and orderly Brexit”.
Scottish Labour leader Kezia Dugdale claimed the speech was “designed more to appease the right wing of the Conservative Party” and risked the break-up of the UK.
She said: “We are already a divided country, and after Theresa May’s speech those divisions will increase. Once again the Tories have put the Union at risk by furthering the sort of divisions the SNP thrives on.”
Scottish Conservative leader Ruth Davidson countered, however, that the PM’s plan had put forward a “clear and reasonable plan” and demanded the SNP take a second referendum off the table.
Ross Greer, the Scottish Greens’ external affairs spokesman said Mrs May must urgently clarify if the Scottish Government’s European proposals will be considered and if Holyrood will have a say in the “final agreement”.
Willie Rennie, the Scottish Liberal Democrat leader, said the UK Government was “hell bent on a hard Brexit regardless of what the impact will be on millions of people through higher prices and greater instability”.
