Jeffrey Shaw Posted February 27, 2014 Share Posted February 27, 2014 I see Standard Life is the first of the big Scottish based companies to say it would probably jump ship from an independent Scotland. I doubt it will be the last. Always look on the bright side of Standard Life... Link to comment Share on other sites More sharing options...
mjw47 Posted February 27, 2014 Share Posted February 27, 2014 I see Standard Life is the first of the big Scottish based companies to say it would probably jump ship from an independent Scotland. I doubt it will be the last. Wouldn't that depend entirely upon what deal the Scots parliament was prepared to give them? Once in charge of their own financial planning they could presumably lower company tax rates and attempt to get English, Welsh and Northern Irish companies to relocate to Scotland. Standard Life are no doubt aware of this and making this statement in order to get a favourable deal if the vote is yes. Still think it will be no though. Link to comment Share on other sites More sharing options...
Eater Sundae Posted February 28, 2014 Share Posted February 28, 2014 Wouldn't that depend entirely upon what deal the Scots parliament was prepared to give them? Once in charge of their own financial planning they could presumably lower company tax rates and attempt to get English, Welsh and Northern Irish companies to relocate to Scotland. Standard Life are no doubt aware of this and making this statement in order to get a favourable deal if the vote is yes. Still think it will be no though. I think the big issue with companies such as Standard Life is not company tax, it is the financial stability of the country as a whole, and issues such as a government backed bank to provide that stability. Without that stability and third party institutions trusting in that stability, Scotland and Scottish based institutions will find borrowing to be expensive. The current uncertainty following the UK's major parties saying that there will not be monetary union between the remaining UK and an independent Scotland, means it is not clear how financial stability will be achieved. Without the UK's Bank of England being there as the bank of last resort, Scottish financial institutions will not appear to be as safe. However, if they moved their headquarters to the remaining UK, then they would be back under the protective umberella of the Bank of England. As I understand it, in order for an independent Scotland to create its own central bank to provide the same degree of trust, to provide the necessary stability, it will need to show reserves. An independent Scotland should be able to do this insofar as it takes over its share of the UK's assets and debts. However, it will be smaller than the old UK, so its resrves w ---------- Post added 28-02-2014 at 05:13 ---------- Continuing my earlier post... As Scotland is smaller than he UK, its reserves and therefore the standing and trust in its central bank will probably be less. But this is irrelevant at present, as it's not even clear if there will even be a central bank. The SNP seemed to take it for granted that they would still have the UK £, and more critically the umberella protection provided by he Bank of England, that they didn't look beyond that. If they don't get formal currency union with the UK, then I think they must create their own central bank. But until now, there's been no further word from the SNP, which looks worrying. They clearly didn't have a plan B. I think hey need one soon if they are to regain any credibility rgarding their financial competence, and to stop any othe big financial institutions from considering moving out.. Link to comment Share on other sites More sharing options...
geared Posted February 28, 2014 Share Posted February 28, 2014 They can't completely re-locate to Scotland anyway, because it will be outside of the EU. They have to maintain a base inside the EU for tax purposes. Link to comment Share on other sites More sharing options...
truman Posted February 28, 2014 Share Posted February 28, 2014 Wouldn't that depend entirely upon what deal the Scots parliament was prepared to give them? Once in charge of their own financial planning they could presumably lower company tax rates and attempt to get English, Welsh and Northern Irish companies to relocate to Scotland. Standard Life are no doubt aware of this and making this statement in order to get a favourable deal if the vote is yes. Still think it will be no though. With no currency union (and no plan B) who would be Scotland's lender of last resort? And what currency would they use? I think this is what has prompted SL's stance.. Link to comment Share on other sites More sharing options...
Mr Clowning Posted February 28, 2014 Share Posted February 28, 2014 With no currency union (and no plan B) who would be Scotland's lender of last resort? And what currency would they use? I think this is what has prompted SL's stance.. Didn't we bail Ireland out with loans due to our trade ties with them ? I still think the Bank of England will be the lender of last resort even if we don't have them share the pound. Link to comment Share on other sites More sharing options...
truman Posted February 28, 2014 Share Posted February 28, 2014 Didn't we bail Ireland out with loans due to our trade ties with them ? I still think the Bank of England will be the lender of last resort even if we don't have them share the pound. Is "I think" good enough for a company like SL to rely on? Not having a go...just asking.. Link to comment Share on other sites More sharing options...
Mr Clowning Posted February 28, 2014 Share Posted February 28, 2014 The 'I think' is my personal perception of what will happen, what other think I cannot comment. I agree though that whatever anyone 'thinks' it has no assurances, its all just open to speculation at the moment though as Salmond does not seem to have a clue how its going to pan out and is basically gambling with Scotland's financial future. Link to comment Share on other sites More sharing options...
mjw47 Posted February 28, 2014 Share Posted February 28, 2014 Didn't we bail Ireland out with loans due to our trade ties with them ? I still think the Bank of England will be the lender of last resort even if we don't have them share the pound. The UK owes Ireland about £9 billion more than Ireland owes the UK. We had no option other than to bail their banks out because our banks had joined in the reckless nonsense going on and would have gone under if the 'bailout' wasn't done. Osborn of course made it look as though it was pure altruism on our part. This independence is beginning to look less and less like independence and more like the kids going away to university and being funded by mum and dad. They wont vote yes so all a moot point really. Link to comment Share on other sites More sharing options...
Mr Clowning Posted February 28, 2014 Share Posted February 28, 2014 Whatever, all this uncertainty from the off is not going to be relaxing for any companies doing business from Scotland, I can see a lot more companies threatening to pull out if they don't start talking about a strategy. Salmon is all dream without substance and nothing he is saying at the moment is offering stability to those trading from there. Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.