Referendum business row intensifies

Written By Unknown on Jumat, 12 September 2014 | 19.12

12 September 2014 Last updated at 12:57

The referendum row over business has intensified as retail bosses plan to publish a letter warning of price rises if Scots vote "Yes" to independence.

First Minister Alex Salmond described recent interventions by business figures as "blatant intimidation from Westminister".

But a spokesman for David Cameron said the prime minister wanted "stakeholders to set out their views".

Meanwhile, a new poll has suggested the referendum race is too close to call.

The ICM poll for the Guardian newspaper put "Yes" on 51% and "No" on 49% once undecided voters were excluded.

The letter warning of price rises has been written by Kingfisher Group head Sir Ian Cheshire, and signed by other business leaders, including the heads of John Lewis, Asda and Marks and Spencer. It will be published in the coming days.

Sir Ian, who has spoken in the past about what he believes to be the risks of independence, has previously chaired an advisory task force which was set up by the UK government.

Other things happening in the campaign with less than a week to go include:

  • Ukip leader Nigel Farage, who is visiting Scotland to speak against independence, has called for the Queen to intervene in the debate.
  • The chief executive of insurance and pension provider Aegon UK, Adrian Grace, said the company - formerly known as Scottish Equitable - was setting up a new registered company in England and Wales to protect policy-holders from the impact of a potential "Yes" vote.
  • A YouGov opinion poll published on Thursday evening suggested the "No" campaign is leading by 52% to 48%, once undecided voters are excluded.

Speaking during a visit to Aberdeen, Mr Salmond said the prime minister had his "fingerprints all over" the recent interventions by retail bosses.

Asked whether Mr Cameron had been privately pressing business leaders to speak out about the potential consequences of a "Yes" vote, the prime minister's official spokesman said that Mr Cameron had "made no secret" of his wish for anyone with concerns to make their voices heard.

The spokesman added: "Is it a surprise that in a debate, stakeholders set out their views? I don't think that's a surprise. If there are individuals or organisations that choose to put out their opinions in whatever format, that is entirely their decision."

Food prices

The spokesman declined to give names of business leaders with whom the PM has spoken in the final weeks of the campaign, saying: "He speaks to business leaders all the time, and of course business leaders set out their own views."

The focus on what might happen to food prices if the country voted "Yes", has prompted Business for Scotland to argue that prices could also go down after independence.

The organisation's Gordon MacIntyre-Kemp suggested to BBC Radio 4's Today programme that some of the business interventions warning of the impact of independence may have been orchestrated.

He said: "Individuals themselves may not have had any contact, but there's definitely a theme running through this. We've heard it all before."

Mr MacIntyre-Kemp added: "I understand that Morrison's and Tesco are refusing to sign this retailers' letter and we've had Tesco say that price rises are entirely speculative."

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Mr Salmond has also accused the UK government of deliberately leaking the news about RBS to the BBC and other news outlets before the bank made the announcement official.

He has claimed an email statement from the Treasury was sent to a media outlet during an RBS board meeting on Wednesday evening - ahead of the bank confirming it would move its legal headquarters to London if there was a Yes vote.

It comes after officials confirmed to the media that RBS had made contingency plans to move its registered head office from Edinburgh to London.

Five banks - including RBS - have said they might move their registered offices out of Scotland, while John Lewis and Asda warned prices may rise.

Mr Salmond said it was an attempt of scaremongering aimed at damaging the independence campaign and called for an investigation into civil servants leaking market sensitive information.

"It puts the Treasury fingerprints all over this story and it provides a spectacular example of the sort of campaign tactics of intimidation and bullying that have served the 'No' campaign so badly," he said.

Analysis: Robert Peston, BBC business editor

Some of the fuss and furore about whether prices in an independent Scotland would be higher than in the rest of the UK is bonkers.

When retailers - food and non food - say they might have to push up their prices if Scotland were to introduce higher taxes or rates or if it were to change employment and planning laws, this is simply to remind Scots why they are voting for or against independence.

The whole point of Scotland becoming a separate nation, for its proponents, is to give Scots the ability to make different choices about the nature of the society they inhabit from what prevails in the rest of the UK.

Inevitably those choices would have an impact on businesses. And frequently they would have an impact on the level of prices.

So talking about the emergence of inevitable price differentials between Scotland and an independent UK is to say something stunningly obvious and uninteresting.

For example we don't expect prices to be the same in UK and France, because the UK and France make different choices about the structure of their respective economies, and these choices have an impact on the productivity and pricing policies of their respective businesses.

Read more from Robert

But, in a letter to Mr Salmond, Sir Jeremy insisted that staff had merely "confirmed its understanding of RBS's contingency planning" judging this was important to "maintain financial stability".

He said they were responding to journalists' questions at a time when the UK financial markets were closed.

It was not a UK government announcement, he said, but a confirmation of the Treasury's understanding of RBS's contingency plan.

Sir Jeremy added that he had consulted Prime Minister David Cameron on the issue, who was clear that there had been no breach of the Ministerial Code.

Politicians on both sides of the independence debate are to ramp up their campaigning on Friday.

With many voters still undecided, Alex Salmond and Nicola Sturgeon are touring Scotland's cities highlighting "seven key gains of independence".

They say independence would bring gains including job-creating powers, protection for the NHS, the removal of nuclear weapons and control of social security.

Ms Sturgeon said: "All across Scotland more and more people are waking up to the opportunities of independence - and this tour of our seven cities will be a fantastic way for us to take the positive message of independence directly to the people of Scotland.

"A 'Yes' vote is our opportunity to transform childcare, get rid of the obscenity of Trident nuclear weapons from the River Clyde and stop the Tories from putting up to 100,000 more children into poverty.

"Independence isn't a magic wand but it's an opportunity we simply can't afford to pass up - which is why I am so confident that the people of Scotland will vote 'Yes' next week."

'Family of nations'

Meanwhile, Mr Farage will hold a "pro-Union" rally in Glasgow with fellow UKIP politicians, where he is to claim that an independent Scotland would not be able to keep the pound - and would be forced to join the euro.

Speaking on LBC radio ahead of the rally, Mr Farage called on the Queen to intervene in the referendum debate in an effort to keep the UK together.

Ukip is not involved with Better Together, which said the party had "no part to play" in its campaign and described Mr Farage's call for a royal intervention as "preposterous".

Elsewhere, Labour leader Ed Miliband will continue campaigning for the "No" vote alongside former Prime Minister Gordon Brown.

And Lib Dem MP and former party leader Charles Kennedy, campaigning in Glasgow, argued that Scots should not "walk away" from the UK.

"Like millions of Scots I've had the benefit of being part of a bigger UK and I don't believe that we should walk away from that," he said.


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