SCVO/SAFE/Alliance briefing to Scottish Parliament: UK-EU Trade and Cooperation Agreement

In September we welcomed the publication of the Constitution, Europe, External Affairs and Culture (CEEAC) Committee’s report on Barriers to trade in goods and opportunities to improve the UK/EU trading relationship. The Scottish Advisory Forum on Europe (SAFE) was pleased to give evidence to the committee earlier this year. SCVO has also been involved in the TCA since the set-up of the UK Domestic Advisory Group (DAG), with Dr Irene Oldfather as SCVO’s representative and currently also vice-chair of the UK DAG. Dr Oldfather also gave evidence in June alongside UK and EU DAG Colleagues.

• We believe that the trading relationship between the UK and the EU has an impact on all of us as citizens and customers living in Scotland.
• We want to see greater engagement with civil society going forward.
• We believe that the voluntary sector is a key partner in delivering a sustainable and inclusive economy in Scotland.

A review of the TCA is due in 2026 and while the parameters are yet to be determined, now is the time to acknowledge its importance in the years ahead. We are pleased to see strong emphasis in the committee’s report on the importance of engaging with civil society on this agenda.

As the EU DAG noted in their evidence to the committee, ‘it is very important that there is cooperation between people in civil society, that there are exchanges on areas in which we have common interests and that we point out areas in which we see problems’.

The CEEAC committee also clearly asks for improved engagement with civil society, business and trade unions through the DAGs and Civil Society Forum. As they indicate: ‘there is a need for ongoing cooperation and collaboration to make continual improvements to the operation of the TCA, an agreement which is still in its infancy and has several unresolved implementation issues’.

Voluntary organisations are key players in delivering a sustainable and inclusive economy in Scotland, and are essential partners in supporting people and communities throughout the country.

With over 46,500 organisations across Scotland, the voluntary sector is wide-reaching and covers every area of society. Small charities (under £100k and new charities) make up 80% of the charity sector, but account for only 4.1% of its annual turnover – they have a large social impact but only a small financial footprint. Large charities with incomes over £1m make up only 3.5% of the sector but these 843 charities account for 80% of the sector's annual income.

In 2022, the sector had a turnover of £9.2bn and the Scottish voluntary sector spending increased by nearly £1bn over 2021/22 reaching £8.8bn. In the same year, the voluntary sector in Scotland employed just over 133,000+ people, making up 5% of the Scottish workforce. 36% of voluntary organisations are based in rural or remote areas, with more organisations per head of population than in urban areas.

For decades SCVO has been an effective advocate for the sector on matters that affect us all, including the economy. Our sector is diverse, complex and often misunderstood and under-appreciated. The political environment is volatile, inequalities are growing fast and the climate emergency looms ever larger. Charities, social enterprises and community organisations have simultaneously never been more needed and never been more under threat. Whether the time has come for a reset or not, Europe and the issues outlined above are not about to disappear anytime soon. The voluntary sector must use all opportunities to demonstrate its commitment to a better society and should be supported to do so.

We must continue to develop our capacity to address multiple entrenched social, economic and environmental problems, including at European level thanks to fora like the Scottish Advisory Forum on Europe (SAFE). Working collectively, within and beyond the voluntary sector, will enable us to make a bigger difference.

SAFE has actively consulted with citizens across Scotland as part of its All Nations Conference, gathering input from diverse citizens perspective voices on the UK-EU TCA. Key concerns raised by consultees included the need for enhanced governance of the TCA which Dr Irene Oldfather, as Vice-Chair of the DAG, continues to advocate for.

Additionally, consultees expressed strong support for expanding youth mobility options, including the re-establishment of a youth mobility scheme and the Erasmus+ program, underscoring the importance of accessible opportunities for young Scots in Europe. We understand that mobility is the focus of the second phase of the Review, but its importance should be noted.

Within the UK DAG, Dr Oldfather also leads the Nations and Regions Sub-Committee. This group has produced a priorities report advocating for key improvements, such as:

• Recognition of UK Disabled Parking documentation across all EU member states and regions.
• Enhanced facilitation for sending and receiving parcels and gifts between the UK and EU.
• Addressing barriers to mobility, particularly for youth, the care sector, creative industries, and those impacted by restrictions on touring visas.

Through these advocacy efforts, SAFE continues to represent Scotland’s civil society in discussions that shape Scotland-EU relations, ensuring that Scotland’s voice is present in both practical and strategic aspects of the TCA’s development and governance.

Human rights, a wellbeing economy, mobility and the transition to net zero are issues of importance to the EU and the UK and they are essential to civil society in Scotland too. We need to ensure that our voice is heard in the coming months and years.

Useful Links:

• EU-UK DAGs Joint Statement 2024 (September 2024)
• UK-EU Trade and Cooperation Agreement, UK Domestic Advisory Group: 2024 to 2025 priorities report (May 2024)