Thursday, 3 April 2014

Scottish independence will bring 'guaranteed' costs, warns Weir Group

Scottish and union flags

One of Scotland's largest companies, Weir Group, believes that independence will "guarantee" higher costs for business but produce few and uncertain benefits.
The Glasgow-based engineering firm, which has about 15,000 employees worldwide, said an expert report it commissioned from Oxford Economics had found that taxes and borrowing costs would be likely to rise, while public spending would be cut after independence.
On the positive side, the independence model set out in the Scottish government's white paper would "clearly bring control over policymaking closer to the people of Scotland", the consultancy said.
It would also allow a future Scottish government "to tailor an expanded range of economic policy levers to the needs and circumstances of the Scottish economy, as well as the distinctive views and values of the Scottish people".
However, Oxford Economics said the extra costs of running the Scottish economy and public services outside the UK, coupled with the uncertainty about the impacts this would have on costs, were substantial.
"Scotland's economy could succeed under independence, and it would be in [the rest of the] UK's interests to facilitate that as far as possible," it concluded.
"But the end of the union would create a number of costs and uncertainties and fewer, more uncertain benefits, for those businesses so vital to Scotland's future prosperity, as it goes its own way."

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