Scottish independence: Yes vote savings threat

MICHAEL Moore has spelled out Treasury concerns about the impact of independence on mortgages, insurance premiums and pensions.
Michael Moore. Picture: TSPLMichael Moore. Picture: TSPL
Michael Moore. Picture: TSPL

Speaking in Edinburgh yesterday, the Scottish Secretary predicted an independent Scotland would have “significant difficulties” providing protection for savers in the event of another banking crash.

At the moment, deposits of up to £85,000 are protected under the UK’s Financial Services Compensation Scheme, but there is no guarantee an independent Scotland could provide the same level of cover.

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Mr Moore said: “Eight-four per cent of mortgages supplied by Scottish firms are provided to people who live in other parts of the UK. Seventy per cent of the pensions we buy here in Scotland are provided by firms based in England, Wales and Northern Ireland.

“If you put a border in the middle of that market, if you introduce different tax and regulatory regimes, it’s wishful thinking to think it’s not going to have any effect on the range of products you and I can buy to protect our families.”

Scottish finance Secretary John Swinney hit back. “When it comes to everyday financial services it is simply irresponsible to scaremonger over people’s savings,” he 
said.

However, Owen Kelly of Scottish Financial Enterprise, said: “Our analysis, particularly in the need for a new regulator and the effects of becoming a separate jurisdiction, are broadly in line with the Treasury analysis.”