Scottish independence would hurt UK economy, say FTSE 100 chairmen

Royal Bank of Scotland (RBS), based in Scotland since 1727 and with 11,500 employees north of the border, said on Thursday it had taken the decision because a Yes vote would impact on its ability to borrow.

Lloyds, which swallowed Halifax Bank of Scotland during the financial crisis, and Standard Life said they too would leave.

The big retailers quickly spoke out amid suggestions government had begun exerting pressure on the UK's biggest companies to be more vocal about the dangers of independence.

The retailer John Lewis signalled that Scottish shoppers would face higher prices if the country broke away from the Union after 307 years.

Sir Charlie Mayfield, chairman of the John Lewis Partnership (pictured below), said retailers would be forced to put up prices north of the border, particularly if Scotland had a different currency.

His comments echoed warnings by executives from supermarkets Asda and Waitrose, high street clothing chain Next and DIY giant B&Q.

Some of Britain's biggest telecoms groups have also issued a collective warning that an independent Scotland may inflate their costs, raising the spectre of across-the-board price rises for consumers north of the border.

The chief executives of BT, TalkTalk, O2, Vodafone, EE and Three on Saturday issued a joint open letter that said independence 'could lead to increased industry costs' due to uncertainties over regulation and radio spectrum.

This weekend, a top thinktank has warned of devastating financial consequences from breaking up the UK.

Independence would wipe £13.8bn off government revenues in Scotland for the 2015-16 financial year, a report from the Centre for Policy Studies predicts. The paper identifies a drop in North Sea revenues and claims the burden of public sector pensions will be too much for the country's budget.

One FTSE 100 chief who responded to the Korn Ferry poll said: 'Nobody wins with a Yes vote - bad for UK and really bad for Scotland,' while one pointed to UK debt and sterling as 'huge issues'.

Another chairman reflected: 'Sad though it is, I think we will see a lot of resentment to a Yes vote in the balance of the UK that might additionally damage Scotland at the periphery of decision making. I can only hope, that for the sake of everyone, that Scotland votes to remain in the Union.'

from Google News http://#

via IFTTT

Tweet