Joanna Cherry said the event of another Scottish independence vote would be “very likely” if the Government did not seek a “differential” agreement for Scotland to remain members of the single market.
The comments come after the Prime Minister confirmed the UK would look to pull out of the single market during Brexit negotiations.
The Edinburgh South West MP told BBC Two’s Daily Politics: “Whether or not there’ll be a referendum depends on the British Government’s response to our proposals in the detailed documents on Scotland’s place in Europe.
“That’s what’s under discussion in the joint ministerial committee this morning. We do not know [when] but if they ditch those proposals and don’t look at them seriously, it’s very likely that there will be another independence referendum.
BBC TWO/DAILY POLITICS
Joanna Cherry made the case for Scotland to remain in the single market
If they ditch those proposals and don’t look at them seriously, it’s very likely that there will be another independence referendum
“The First Minister has said it will not be this year – we’ll need to see how the timetable unfolds thereafter.”
Ms Cherry said the calls were about “respecting the wishes of Scottish people” after 62 per cent of people in Scotland voted for Remain.
“We’re not interested in a veto,” she insisted. “We believe that the wishes of the rest of the UK – England and Wales, not Northern Ireland – to leave the EU must be respected in the same way that the wishes of the Scots to remain should be respected.
“That’s why we’ve put forward this compromise proposal.”
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Nicola Sturgeon has put forward a compromise proposal to keep Scotland in the single market
The politician then gave Gibraltar and the Channel Islands as examples of places which have unique arrangements with the EU.
Gibraltar is in the EU but not in the customs union and the Channel Islands are in the customs union but not in the EU.
“We suggested the whole of the UK could remain in the single market [but] Theresa May ruled that out on Tuesday in her speech,” said Ms Cherry.
“One might question her motives in doing that but our fallback position was the Scotland should remain in the single market.
“There is existing scope and precedent for differential arrangements.”