Scottish independence: English businesses tell of ‘nervousness’

THE prospect of Scottish independence or enhanced devolution is causing “considerable nervousness” in the North-east of England, a senior regional business leader has warned.

Andrew Sugden, director of membership and policy at the North East Chambers of Commerce (NECC), said independence or “the remarkable consolation prize of devo-max” represents “active economic competition” for the region.

His comments followed a seminar by the think-tank Institute for Public Policy Research (IPPR) in Newcastle on Monday, entitled Assessing the implications of greater Scottish autonomy for the North of England.

Writing on the NECC blog, Mr Sugden added: “The seminar heard that the freedoms available north of the Border may not be as wide-ranging as first assumed, particularly where the Barnett Formula becomes part of the negotiation and an existing business base acts as a brake on any plans to lower corporation tax. As one contributor put it, when challenging the pull of a low-tax businesses location: ‘Jersey today, not Edinburgh tomorrow’.

“It’s clear that this issue will run up to and beyond the planned referendum in Scotland. What is not so clear, but very welcome, is the opportunity this affords the North-east to reconsider the policy devolution it expects within England.”