Economics of independence studied

Nov 1 2012

Scotland's largest council is to examine the potential economic impact of a 'Yes' vote in the independence referendum.

Glasgow City Council has approved a Labour motion recognising that independence "could have a significant impact on the economic environment which local government operates in".

The motion by council leader Gordon Matheson states: "As a responsible local authority with long term plans for the city, it behoves that council examines how independence would affect its ability to provide services, should Scotland secede from the United Kingdom.

"Consequently, council calls on the chief executive to conduct an assessment of what the financial impact on the council would be in the event of Scotland becoming an independent nation-state."

Last week Mr Matheson said that independence could have a "disastrous" impact on jobs in Glasgow, that there is a "climate of fear" among businesses in the city and that there would be a "massive impact" on employment in the area if Scots did decide to leave the UK.

Jobs could be lost at the shipyards while business tourism in the city could also suffer, Mr Matheson said.

Labour was re-elected to lead the city last May in a victory Mr Matheson hailed as "the most sensational result in the history of Glasgow City Council" which "sent the SNP juggernaut rolling into a ditch".