Scottish Independence: how will this affect business?
There has been much debate and deliberation over the last few months about the Scottish rally for independence, and how this will affect cross-border trading, the country’s current subsidies to their public services and, even, the sterling currency.
It’s interesting to see in the press that this week the debate has passed over to businesses and, in a survey conducted by the British Chambers of Commerce (BCC), 85% of businesses wanted Scotland to remain part of the Union.
What we want to know is what the implications could, indeed, be for businesses, their economy, and even to affect aspects such as the price, availability and need for office space, if the vote goes their way.
Why do businesses not want a yes vote?
- If Scotland becomes independent, the cross-border trading will have the same restrictions and requirements as trading with bigger, statistically, more resourceful countries. Therefore, businesses may take their time and money and spend it elsewhere, leaving Scotland with less revenue and unsold produce.
- If the vote goes in the country’s favour and they lose the pound, it will undermine the UK currency. With Scotland’s Oil revenue, if it were to stay with them under the Euro or their own currency, the rest of the UK’s net worth would reduce dramatically.
- Scotland are not likely to become a more affluent and successful country by leaving the UK; they are more likely to cut off the perks and opportunities of the handy tie to England. Without the current UK subsidies for Scottish public services, such as healthcare and education systems, citizens will be left footing a hefty bill they haven't had to consider in the past, leaving less money and opportunity, especially for startups and smaller business owners.
- For now there is large revenue from industries, such as Oil and Whisky, in Scotland, but there aren’t enough natural resources for the country to maintain an income this high if they look long term.
- Big businesses like Standard Life and Shell have claimed they may pull out of the country if they gain independence, cutting thousands of Scottish jobs. And if they are making such a statement, other companies will follow, leaving a dent in the country’s economy.
Those are just a few of our reasons why businesses could be opposed to the vote of independence. We have a feeling that this subject isn’t going to die down any time soon, with so much to consider…
How do you think it will go? Follow the link below to give us your vote. And why not leave us a comment below to give us your reasons why.