Scotland's new currency

[AtW]

wouldn't have had tesco, virgin and a host of US fund managers setting up shop there.

They'd move HQ to pay 10% corp tax there faster than you can say Aye.

[doodab]

They'd move HQ to pay 10% corp tax there faster than you can say Aye.

If that were true London would cease to exist.

[Zero Liability]

It would be amusing to see the mental gymnastics a left-leaning party like the SNP would have to go through to justify that in terms of their party platform.

Besides, even if Scotland did cut CT to 10%, what's to stop England from doing the same if it felt the need to?

With all that said, I am in favour of Scottish secession. Just don't see why Scotland needs to keep the £.

[AtW]

Besides, even if Scotland did cut CT to 10%, what's to stop England from doing the same if it felt the need to?

Cutting tax is much harder for existing tax revenues than introducing new low amount when your revenues are nil.

The real problem is that banks don't want to pay even 10% tax on profits.

[Wanderer]

Treasury said they will assume ALL debts in the event of YES vote, and now Osborne totally ruled that out by saying they won't have GBP - you can't reasonably expect independent country to take on debt denominated in other currency.

So, no - independent Scotland won't have debts. At least at start.

Why would the UK allow Scotland to get off scot-free and not take on it's fair share of the debts? Dream on.

How come England take so long to join the battle?

The rest of the UK are pretty apathetic to be honest. We aren't begging Scotland to stay, in fact a lot of people would be happy to see them go so if they vote to go their own way then we wish them all the best.

The trouble is that now Alex Salmond has been shot down by the three major political parties on the currency union thing and he's on the ropes because he doesn't have an alternative so it's all looking a bit flimsy.

[AtW]

Why would the UK allow Scotland to get off scot-free and not take on it's fair share of the debts? Dream on.

Treasury said all UK debt will remain UK in event of the YES vote, read here:

BBC News - Scottish independence: Treasury makes debt pledge

"The Treasury said it will "in all circumstances" take responsibility for all UK government debt, should Scotland vote for independence in September. "

Is that clear? Debt can't be split just like that without approval of all debt holders, which they won't get since risk profiles are different.

The trouble is that now Alex Salmond has been shot down by the three major political parties on the currency union thing and he's on the ropes because he doesn't have an alternative so it's all looking a bit flimsy.

Alex Salmond kept his word and gave Scotland chance to decide - regardless of what the vote does he will have fulfilled what he promised and the rest is up to the Scottish residents.

[Wanderer]

Treasury said all UK debt will remain UK in event of the YES vote, read here:

BBC News - Scottish independence: Treasury makes debt pledge

"The Treasury said it will "in all circumstances" take responsibility for all UK government debt, should Scotland vote for independence in September. "

Is that clear? Debt can't be split just like that without approval of all debt holders, which they won't get since risk profiles are different.

Yep, I can fully understand that the UK is responsible for the debt and it can't let Scotland take it on (and potentially default on it). They need to make that crystal clear because unless they did it would destroy the UK's credit rating and raise the cost of borrowing dramatically so it's a no brainer isn't it.

However, your contention that the newly independent Scotland would be "debt free" is wrong, reading on a few lines later it says:

However, the Treasury, in addition to its guarantee, added that an independent Scotland would still be expected to pay its "fair share".

[Ticktock]

Treasury said all UK debt will remain UK in event of the YES vote, read here:

BBC News - Scottish independence: Treasury makes debt pledge

"The Treasury said it will "in all circumstances" take responsibility for all UK government debt, should Scotland vote for independence in September. "

Is that clear? Debt can't be split just like that without approval of all debt holders, which they won't get since risk profiles are different.

Alex Salmond kept his word and gave Scotland chance to decide - regardless of what the vote does he will have fulfilled what he promised and the rest is up to the Scottish residents.

Unfortunately you don't seem to have read the analysis of economists and financial leaders, who have said that Scotland can't walk away from the debts, or that if they do then they can expect punitive interest rates to be charged, both to the new government and at the consumer level. The consensus opinion is that no matter what Salmond may say at the moment, there's no way he'd follow through with declaring Scotland debt-free.


It's a shame that so many supposedly intelligent people on this forum seem to drivel based on emotion without using any critical thinking.

[Zero Liability]

Cutting tax is much harder for existing tax revenues than introducing new low amount when your revenues are nil.

True but they may be left with no option.

The government's budget is £800billion or so p.a. I fail to understand which of that £800b it is struggling to cut. Here's a good article on how tepid the current 'austerity' measures will be in achieving balanced budgets, and no doubt their next excuse for taxing us unless they're forced to do otherwise. Even accounting for budgetary items that are 'protected', there's room for cuts. Moreover, it may well attract FDI by lowering the CT, and at the very least avoid haemorrhaging it to Scotland. I would be very pleased if the English govt was forced into this position. Of course it'll most likely take the easy route and try finance it with a combination of debt and inflation.

It's worth noting that the CT accounts only for a small fraction of the govt's tax revenues but granted, if these companies move away, it isn't only CT revenues that will be lost.

[centurian]

Treasury said all UK debt will remain UK in event of the YES vote, read here:

BBC News - Scottish independence: Treasury makes debt pledge

What you are reading is the media take/spin on it - read the actual statement from the Treasury. It's not the same message.

https://www.gov.uk/government/upload...referendum.pdf

In short, the legal agreement with the holders of the bonds will remain with rUK. But Scotland would effectively be in debt to rUK for it's share until those bonds are paid off. If Scotland refuses to pay rUK, Scotland will be in default.

An independent Scotland will not be "debt free"