Scottish Independence – How will it affect you?
Next month is the month that Scotland votes on independence from the UK. Surrounded by a great deal of uncertainty in regard to currency, interest rates, regulation and investor protection – it’s unknown as to which way Scotland will vote – But how will Scottish independence affect you?
Analysts unite in the opinion that an independent Scotland, much like any other small economy will have higher interest rates, higher costs and higher taxes. Not only could this reduce returns, it can increase charges, as a result Scottish independence referendum talks alone have already to triggered a flight to the UK of hundreds of billions of pounds before the vote has even taken place.
In addition to this, many businesses have announced they will be either partly of fully moving their operations to the UK if Scotland gain independence, with Aegon UK (currently employing 2,000 in Edinburgh alone) announcing a possible move last week, with 90% of their customers based in England, they simply don’t want to take any risks staying in an independent Scotland.
Other businesses suggest that in the event of a “No Vote”, they’ll be an “almighty transactional boom” as investors go ahead with planned deals that have been delayed due to the independence referendum. Many contingency plans have been put in place to cover all eventualities, with some businesses going as far as to say “If there was deemed to be an immediate risk to investments, the firm would transfer client assets ‘immediately’ to the English companies.” James McCulloch – Spires &Jeffery.
Being part of the UK means Scottish economy is protected from the peaks and troughs of the global economy by the UK’s reputation and status. As Scotland shows economic strength in some areas the UK doesn’t, the two countries compliment each other in an economic sense. It seems that given a “Yes” vote, both nations face challenges, however, the UK has the economic grounding to go it alone, whereas Scotland is predicted to struggle without the connections and standing of the UK and the GPB.
It’s not yet clear which way Scotland will vote next month, or how it will really affect the economy, or your money. In these early stages, it’s wise to keep up to date with economy news as it unfolds and keep funds in the UK. Let Ernest Grant and Zenith Benefits help you, as an individual and as employer or employee, understand what the independence referendum means for you and your employees.