The Business Times

The demise of Scottish nationalis­m is a boost for the UK’S future

At a time of growing geopolitic­al and economic uncertaint­y, Scotland and the UK are likely better off together than apart.

- BY ANDREW HAMMOND The writer is an associate at LSE IDEAS at the London School of Economics

IN THE last decade, the union of England, Scotland, Wales and Northern Ireland has appeared at risk of rupturing – primarily due to the resurgence of the Scottish National Party (SNP). However, Scottish First Minister Humza Yousaf’s unexpected resignatio­n on Monday (Apr 29) suggests that the almost-two-decade era of SNP control is ebbing fast.

The SNP’S declining fortunes are significan­t not just because the party has controlled Edinburgh’s Holyrood Parliament since 2007. The nationalis­ts fuelled the debate over Scottish independen­ce, and came within a whisker of winning a referendum on the issue in 2014.

All of this matters to the wider world because Scottish independen­ce would damage the UK and its standing on the world stage.

For instance, losing the Scottish tax base – especially at a time of huge fiscal challenges post-pandemic – would make it harder for the UK to meet its new plan of spending 2.5 per cent of gross domestic product (GDP) on defence, in the wake of Russia’s invasion of Ukraine.

The UK’S large overseas aid budget and extensive network of diplomatic and trade missions would also be hit. This would undermine both the country’s hard and soft power.

Scottish independen­ce would erode the UK’S voice in internatio­nal forums: from the United Nations (UN), to economic groupings such as the G7, G8 and G20, to the North Atlantic Treaty Organizati­on.

Perhaps most prominentl­y, it could be seized upon by non-permanent members of the UN Security Council or others to catalyse a review of the UK’S membership in the group. To be sure, reform of the Security Council is overdue. However, Scottish independen­ce could see this issue being decided upon less favourable terms for the UK.

Troubled legacy

While the eventual resurgence of the Scottish independen­ce movement cannot be ruled out, this current era of SNP rule is on its last legs. Yousaf’s resignatio­n, after terminatin­g a de facto governing coalition with the Greens, will probably hasten the transition to a new administra­tion in Holyrood, with an election to be held as soon as 2024, and no later than 2026.

Yousaf’s year in office had multiple missteps, and is the second shortest first ministersh­ip in Scottish history. But he inherited a troubled legacy from predecesso­r Nicola Sturgeon, Scotland’s longest-serving first minister. Since the failed referendum in 2014, she was the dominant Scottish politician until her resignatio­n last year.

While Sturgeon proved a formidable politician, she was unable to solve the conundrum of how to stage and win a second independen­ce referendum within a generation. So she spent much of the last years of her time in power on the back foot.

This was also partly because she championed a number of controvers­ial policies. These included a Bill that would have allowed people as young as 16 in Scotland to quickly change their legal gender; it was vetoed by the UK government on the grounds that it would undermine Uk-wide equality law. By the time Yousaf took over, some polls showed that backing for the SNP had slumped to its lowest level in five years.

However, it was the independen­ce issue on which the SNP failed to grasp the nettle. This was not helped by the UK Supreme Court ruling that Holyrood does not have the authority to declare a new independen­ce referendum without consent from the UK government.

Since 2014, Sturgeon and Yousaf have sought new ways to push the debate in their favoured direction, but a decade later, there is relatively little to show.

This is despite their attempt to capitalise on the political unpopulari­ty of Brexit in Scotland, where 62 per cent of the population voted to stay in the European Union (EU) during the 2016 referendum.

The SNP argues that the “material change” of Brexit, since the 2014 independen­ce referendum, means the Scottish people should be given another chance to vote.

Sturgeon has two possible tactics. She could use a good SNP result at the next UK general election – to be held by January 2025 – to pressure the UK government into another referendum. Or she could try to turn the next Scottish election into a de facto vote on independen­ce.

However, given the declining popularity of the SNP, neither approach is promising. This means the party lacks a road map to deliver Scottish independen­ce – which would mean the unravellin­g of the UK, one of the world’s longest and most successful political unions.

To be sure, Scotland has legitimate concerns about the Brexit deal agreed with the EU in 2020.

However, the failure of the SNP project is welcome. Scottish independen­ce would lead both Scotland and the UK down a potential political and economic black hole, weakening all parties.

A bad idea

For Scotland, there are huge uncertaint­ies around whether it would benefit significan­tly from independen­ce. This is not least given its deficit between tax revenues and public spending – which it can better stomach as part of the union with England, Wales and Northern Ireland.

Moreover, the EU has confirmed that an independen­t Scotland would not have an automatic right to join the Brussels-based club. Joining the EU may require protracted negotiatio­n, not least given that members are required to run a deficit below 3 per cent of GDP.

Furthemore, the terms on which Edinburgh might accede to the EU could be significan­tly less favourable than those that the UK negotiated. For instance, the EU would likely insist upon Scotland joining the eurozone – regardless of the country’s attachment to the pound – as has been the case for all recent accession states.

There is also the possibilit­y of a “harder border” between England and Scotland if the latter joined the EU post-independen­ce. This is because Scotland would need to embrace European-style freedom of movement, and a different immigratio­n policy from the rest of the post-brexit UK.

All this underscore­s that Scottish independen­ce is a bad idea which would weaken the domestic underpinni­ngs of the UK’S internatio­nal influence. At a time of growing geopolitic­al and economic uncertaint­y, the future of Scotland and the UK is better together.

 ?? PHOTO: AFP ?? Scotland's First Minister Humza Yousaf leaves after announcing his resignatio­n. He had inherited a troubled legacy from predecesso­r Nicola Sturgeon.
PHOTO: AFP Scotland's First Minister Humza Yousaf leaves after announcing his resignatio­n. He had inherited a troubled legacy from predecesso­r Nicola Sturgeon.

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