Partner Article

Scottish Independence: What action should the North East take?

“The North East business community now needs to collectively respond to the blueprint for Scottish Independence“

“I have said before that the North East business community needs to be aware of the potential impact of Scottish Independence, and the publication of the Scottish Government’s blueprint for independence this week – “Scotland’s Future, Your Guide to an Independent Scotland” – has confirmed the extent of the ambition of Alex Salmond’s administration.

“The blueprint proposes a broad range of measures, but a key area the business community in the North East should be aware of is the proposals for business taxation in Scotland.

“The blueprint for Scotland suggests the following two key measures to stimulate growth for Scottish businesses:

• A clear timetable to reduce the rate of corporation tax paid by companies located in Scotland to 3% lower than the mainstream rate prevailing in the UK
• A reduction in Air Passenger Duties by 50%

“These proposals, if enacted, would give the North East a direct border with an area of the UK where the cost of doing business will be likely to be materially less than that in the North East.

“The North East business community may have to accept there is little they can do to influence the populace of Scotland in their choice on independence. However we as a region do need to ensure that we can compete on an even basis with a neighbour who we border directly, as Northern Ireland has found with the Republic of Ireland.

“Without real thought about how to compete if Scottish Independence proceeds, we may find that business owners, inward investors and air travellers alike have a clear financial incentive to keep heading a very short distance northwards from the North East.”

Alistair Wilson, Tait Walker partner.

This was posted in Bdaily's Members' News section by Alastair Wilson .