Scottish firms prepare their escape
Our exclusive poll reveals giants worth billions on verge of fleeing
LEADING Scottish firms are acting ahead of the referendum later this year to move operations out of the country into the rest of the UK, according to an exclusive survey.
The poll of 100 businesses with combined sales of more than £15 billion and which employ thousands of staff showed that more than a third would consider quitting Scotland, possibly by moving operations elsewhere in the UK or by moving their legal headquarters south of the border. The damage to Scotland’s £102 billion economy of such a substantial relocation would be considerable.
Major financial firms such as banks RBS and Lloyds are likely to have to move their legal homes – their registered offices – to London following a European Union directive that they must be headquartered where most of their business is transacted. Standard Life, regarded as one of the pre-eminent Scottish financial institutions, also said it could shift large parts of its operation out of Scotland.
However, the news that firms are already voting with their feet to pull out operations from Scotland is likely to have a devastating effect on the Scottish National Party’s campaign for independence.
A number of those questioned by pollster Survation for The Mail on Sunday said they were not waiting for the referendum result and had acted already.
‘We have already taken steps to mitigate the political risk of the Scottish question and have moved trading business to London,’ said the boss of one engineering firm. ‘Sadly, I have voted with my feet.’
Other firms said they believed the danger for the Scottish economy was already present in the run-up to the referendum, which was creating fear and uncertainty among the business community and investors.
‘I believe real damage to our economy will happen during the run-up to the referendum through companies not wishing to commit and projects delayed,’ said one respondent.
‘I also believe that Scotland will go into economic doldrums for many years and that
Scotland will operate in a very fragile and uncertain environment with the local, regional, national and European political parties all fighting for position and not worrying about the people of Scotland or businesses.’
Defence firms are heavily represented in Scotland, with BAE Systems promising to shift shipbuilding away from Portsmouth on to the River Clyde, as long as the Scotland remains part of the UK.
Another leading defence firm polled in our survey clearly sympathised with BAE’s position, saying it needed to remain close to its major customer. ‘Much of our work is done for the MoD. We would take thousands of jobs from Scotland back to our offices in England to support it,’ the company said.
Another company executive said: ‘Divorce is always an expensive business.
‘Who would even consider entering into that divorce without even knowing what the value or costs are?’
The Better Together campaign, which wants Scotland to remain part of the UK said: ‘This poll confirms what companies like Standard Life and Alliance Trust have made clear. Independence would cost Scottish jobs and put up costs for families here. It’s a risk we don’t have to take.’