Scottish referendum: most firms lack ‘yes’ plan

03-Aug-2014 - Last updated on 04-Aug-2014 at 11:01 GMT

Haggis looks like being one of the games' big food winners but most businesses are still unprepared for a referendum yes vote

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Most Scottish businesses are unprepared for a ‘yes’ vote in the nation’s forthcoming independence referendum, according to accountancy firm KPMG.

Nearly 84% of firms surveyed admitted they had not considered a continuity plan ahead of the Scotland’s vote on September 18.

KPMG senior partner Scotland Craig Anderson said firms were looking for reassurance about the implications of a possible yes vote: “It is clear that the business community is still seeking to have concerns allayed as we move closer to September 18,” said Anderson.

“Our research suggests that most businesses probably do not feel sufficiently informed to make appropriate long-term plans with any action likely to be taken only when the outcome is known.”

The biggest issue

Asked what were the key topics associated with the referendum, nearly one third (29%) highlighted potential changes to the tax regime. Nearly a quarter (24.8%) suggested the possible impact of a change in currency, while 21.9% said changes to cross border trade in Great Britain was the biggest issue facing their business, should Scotland opt for independence.

Head of tax for KPMG in Scotland Jon Meeten said a positive vote would bring problems and opportunities. “The potential creation of an independent and wholly separate Scottish tax system could give rise to a period of uncertainty for businesses and individuals, as well as create opportunities to design a more effective system tailored to Scotland’s specific requirements,” said Meeten.

“Regardless of the result of the Scottish independence referendum, the Scotland Act 2012 means that changes will be made to the structure and operation of taxation in Scotland.”

Last week Scotland finance secretary John Swinney said a positive vote would boost the global profile of Scottish firms and generate more jobs. “With a yes vote and the full powers of independence , we would be able to use the full range of economic levers at our disposal to enable Scottish companies to increase their global reach,” he told BBC news.

Tesco reported sale

Meanwhile, supermarket giant Tesco reported sales of Scottish food and drink surged during the Commonwealth Games in Scotland, which ended yesterday (August 3).

Britain’s biggest retailer reported rocketing sales of haggis and black or white puddings, up by 80%, malt whisky up by 30% and Tunnocks tea cakes up by 20%.

Tesco head of local sourcing Sarah Mackie said: “The Commonwealth Games has put a world spotlight on Scotland and created a natural curiosity for shoppers around the UK to try out Scottish food and drink.

“We expected to see demand grow in our Scottish stores but customers right across Britain are buying Scottish products – it is a great testament to the wonderful range of products that producers in Scotland create.”

Haggis has been the real winner during the games and it may become permanently more popular south of the border, she added.

Last month, Scottish food minister Richard Lochhead linked surging sales of Scotland’s food and drink to a ‘yes’ vote in next month’s referendum.

1 comment

Contingency plans

Posted by Jim Flynn, 11 August 2014 - 09:45 GMT

A Yes vote can only strengthen demand for high quality Scottish Produce. You know? The stuff you just can't get from any other Country? Scottish food and drink has many USPs and a yes vote can only strengthen the hand of the Scots food and drink sector by allowing Scottish government to increase support and developing more international trade links.

The reality is that Scottish government has been already been investing wisely in how the food and drink sector is marketed through Scottish Enterprise and Scotland Food and Drink. This has delivered dramatic results, mainly in whisky but also in the wider food sector.

An independent Scotland will, as Swinney says, likely have even more focus and investment in this key area for Scotland. Never mind oil! food and drink is a high value strategic sector for Scotland and for the first time in my lifetime it is getting the backing it deserves.

Sure, there may be upheaval and change but business here will get on with it and capitalise where they can. That's what businesses do. It is funny how the contingencies are about Tax though when the tax system is so bloated, inefficient and burdensome on industry. Perhaps the Scots can come up with a way to make this fairer and easier on business that will be a model for others to follow?

UK Government on the other hand will do what it does best and for me that is to delay, ignore and marginalise the sector that none of us can do without. It is truly shameful the way Westminster has kicked the Elliott report into the long grass on the back of a cabinet reshuffle because they think they can't afford its recommendations. The clearly feel it's. Ok for e consumer to be defrauded, cheated or even made sick or I'll because of food fraud that is now a common occurrence.

The main organisation that needs a contingency plan in the event of a yes vote, or even a no vote, is Westminster as the fact that Scots are going down this road in the first place tells you how good a job UK government are doing, not!

One thing is for sure the Scottish referendum will change Uk politics forever because people are demanding a voice that's is heard and acted upon.

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