Leader: It’s bad for business to be left wondering

he CBI in Scotland is rarely referred to by its formal title, but there is a clue in the name of Confederation of British Industry to suggest that, as a business organisation, it might have some reservations about the prospect of constitutional change north of the Border. In the days before devolution the CBI was, to put it mildly, sceptical and some of its wilder warnings, particularly over giving a Scottish parliament tax powers, were wide of the mark.

However, the CBI does speak for a large number of businesses and when its chairman, Linda Urquhart, expresses concern about the uncertainties caused by the Scottish Government’s commitment to hold a referendum on Scotland “seceding” – the word the organisation itself chose – from the United Kingdom, it deserves to be listened to and to receive a proper response from the Scottish National Party government.

Ms Urquhart’s case, supported we are told by her membership, is that the doubts over Scotland’s constitutional future worry business. She also argues there should be one straight question on whether Scotland remains part of the United Kingdom or not, and the water should not be muddied by a possible third question, mooted by First Minister Alex Salmond, on “devo max”.

In both instances Ms Urquhart has a point. Businesses prefer certainty in the way they go about their work, whether that be in terms of labour laws, currency fluctuations, or their relationship with their banks. Similarly with the political environment in which they operate. With the SNP promising a referendum on independence only near the end of its five-year term, this uncertainly could damage business, and thereby damage Scotland. The SNP manifesto commitment to a later plebiscite notwithstanding, there is a case for a earlier decision by the Scottish people to end this uncertainty.

Ms Urquhart also has a point on a possible three-question referendum, giving people the option of Scotland having far more powers short of what might be called classical independence. The problem with this is similar to the problem identified on Wednesday night by Scottish Secretary Michael Moore when he challenged the SNP over the definition of independence. If we do not yet know what is meant by independence, and we do not, it will be that much more difficult to define “devo max” in a way that will allow voters to make an informed choice.

Replying to the CBI, the SNP claimed many in business back more fiscal powers for Scotland but, typically, that response did not address the central point about uncertainty made by Ms Urquhart.

Even company leaders who favour greater fiscal powers for Holyrood, or even independence, however defined, will surely favour resolving Scotland’s constitutional future quickly so they can get on with the business of running their businesses.