Scotland’s Financial Services At Threat With Brexit

The financial services of Scotland highly relies on British customers and hence post Brexit the industry may not enjoy the same smoothness than what it is now if Scottish independence becomes a reality, reveals a report by former Group Chief Economist at Royal Bank of Scotland, Jeremy Peat, and former head of industry body Scottish Financial Enterprise, Owen Kelly.

There are more uncertainties to be caused by separation and this poses a greater threat than Brexit as almost all the financial services in the country serves United Kingdom more and less European Union market. The worst hit would be banking, insurance and pension product segments.

The Scottish Government has continued maintaining its stance that withdrawal of UK from EU bloc would post largest economic danger and lately the same is further undermined by a report that warns threat of a second independence referendum damaging business demand for factory, shop and office space.

Last week a report by Royal Institution of Chartered Surveyors revealed Scotland is currently experiencing largest fall in commercial premise demand in the UK and SNP’s independence threat is being blamed.

Finance Minister Nicola Sturgeon had earlier talked about a re-run of 2014’s vote, but her rival argues it would harness businesses in the country.

The financial services industry in Scotland is worth 8 billion-a-year pound to the country’s economy and it is employing about 200,000 people.

Scottish Tory finance spokesman Murdo Fraser said: “More and more we are starting to hear industry experts express concerns about the damage that a second independence referendum would cause.

Comments